FuboTV Inc. (FUBO) shares plummeted 5.43% in Tuesday's trading session, despite the company reporting better-than-expected earnings for the quarter ended September 30. The streaming service provider posted adjusted earnings of 2 cents per share, surpassing analysts' expectations of a 4-cent loss and improving significantly from the 16-cent loss reported in the same quarter last year.

However, investors appeared to focus on several concerning factors that emerged from the earnings report. FuboTV's revenue fell 2.3% to $377.20 million, although it still beat the Street's estimate of $361.33 million. The company's introduction of a new $55/month super-skinny bundle, aimed at addressing growing price sensitivity, raised concerns about potential pressure on Average Revenue Per User (ARPU). Additionally, negative free cash flow and lowered fiscal 2026 estimates following the recent merger with Hulu + Live TV seemed to weigh on investor sentiment.

Despite these challenges, some analysts remain optimistic about FuboTV's prospects. Needham analysts maintained their Buy rating on the stock with a $4.25 price target, citing the company's improved scale with 6 million pro forma subscribers, lower content costs, and expanded bundling options. They also highlighted the potential benefits of Disney's 70% ownership stake and the integration of FuboTV's advertising business into Disney. As the streaming landscape continues to evolve, investors will be closely watching how FuboTV navigates these challenges and capitalizes on its sports-first positioning in the competitive market.