Why FuboTV Stock Is Soaring 30% This Week

Shareholders of FuboTV (NYSE: FUBO) stock are having a banner week. After some important news last Friday, shares have been plowing higher all week as the company helps explain the impacts of a big courtroom win.

Fubo stock was up by as much as 38% at the peak this week. Heading into the final day of trading, shares were still up by 29.4% for the week, according to data provided by S&P Global Market Intelligence .

That surge has helped ease the pain for longer-term shareholders. Even with this week's spike, shares of the sports-oriented streaming service are lower by about 37% year to date.

Fubo wins the first battle

The future started looking bleak for Fubo when three major players in streaming media announced plans for a new joint venture (JV) sports-oriented service. The Walt Disney Company (NYSE: DIS) , Fox Corp. (NASDAQ: FOXA) , and Warner Bros. Discovery (NASDAQ: WBD) recently announced plans for the new Venu Sports JV.

That joint venture would potentially be a crushing blow for Fubo as it seeks to grow revenue and achieve profitability from sports-oriented subscribers. But last Friday, a judge approved Fubo's request for a preliminary injunction against the plan proposed by the three media giants .

Fubo CEO and co-founder David Gandler stated:

[The] ruling is a victory not only for Fubo but also for consumers. This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options.

According to the partners, the proposed JV would control about 60%- 80% of live broadcast sports content. That would likely cut into Fubo's client base significantly. Although Fubo has grown revenue and subscribers over the last year, it hasn't been a steady increase.

Following the judge's ruling, the Fubo CEO has spent some of his time this week trying to drum up consumer support. In an interview with CNBC on Monday, he argued that the proposed venture "deprived consumers of choice." It would also likely be a dagger in Fubo's path to success. Investors are now betting the JV itself is dead.

Howard Smith has positions in Walt Disney and Warner Bros. Discovery. The Motley Fool has positions in and recommends Walt Disney, Warner Bros. Discovery, and fuboTV. The Motley Fool has a disclosure policy .