Fubo stock spikes after court's Venu ruling

After last week’s injunction ruled by a federal judge against Venu Sports, shares of Fubo have spiked on the stock market. However, the stock is still down significantly in 2024.

Per Front Office Sports , Fubo’s shares increased 17% on Friday after a federal judge issued a preliminary injunction , resulting from a lawsuit filed Fubo, halting to the launch of Venu Sports.

Venu is the streaming service backed by Disney, Fox, and Warner Bros. Discovery.

Fubo shares rose by nearly 18 percent on Monday, the first full day of trading following Friday’s ruling, and were up another four percent Tuesday.

But year-to-date, Fubo shares are in the tank. The company’s stock is down 40% from the start of the year, even with the recent surge. In fact, prior to the judge’s ruling against Venu, Fubo stock was close to a 52-week low.

One firm actually downgraded Fubo stock this week despite the surge, largely due to the company’s disappointing earnings report earlier this month .

Some analysts, meanwhile, caution that FuboTV’s surge over the past two days could be an illusion. Seaport Research downgraded FuboTV on Monday to a neutral rating after five months of a buy rating.

“With no change in estimates at this point, and with company guidance indicating their subscriber projections do not reflect the potential impact of Venu operating in the market, we think shares are largely driven by the legal process at this point, including appeals,” the firm wrote in a note to clients.

Football season being around the corner should be a good thing for Fubo, but we’ll see if the company’s next earnings report bears fruit in that regard.

[ Front Office Sports ]

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