Why was FuboTV stock falling today?

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Shares FuboTV (NYSE: FUBO ) They were pulling back today after agreeing to merge with last week’s increase. DisneyS (NYSE: DIS ) Hulu + Live TV.

There wasn’t a single company-specific news out on Fubo today, but after digesting the news, investors may think that Fubo’s stock rally is overdone. A day of uncertainty in the market, led by increasing bets that the Federal Reserve will not cut interest rates this year, also appears to be fueling the sell-off.

As of 1:10 p.m., the stock was down 11.2 percent.

Image source: Getty Images

Investors cheered last week’s announcement of the Fubo/Hulu + Live TV deal.

It makes sense in some ways that Disney, which owns the largest Hulu + Live TV subscriber base, will own 70% of the new Fubo. But many questions remain even after Disney canceled Venu, the sports streaming service that was expected to become Fubo’s competitor. Fubo shares fell on Friday after the announcement.

Investors today seem to continue to question the strategic rationale of the merger. Fubo is currently unprofitable and Disney has reached profitability in its streaming division, but it’s unclear whether Hulu + Live TV is profitable.

Also, stocks fell broadly today as expectations of further rate cuts from the Fed faded after a strong jobs report.

The surge following the merger news was a one-time gain for Fubo stock, and the company, or future combined company, will need to continue to deliver good news to keep the stock moving higher. With ESPN’s mainstream service set to launch this fall, Fubo’s future appears unclear.

While the merger is better than Fubo remaining an independent company, it is far from guaranteeing success. Stream stock.

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