What Happened?
A number of stocks fell in the afternoon session after geopolitical uncertainty and a sharp rise in oil prices weighed on broader market sentiment.
The S&P 500 dropped by 1%, with the Dow and Nasdaq also seeing declines as conflict in Iran intensified. Tensions around the crucial Strait of Hormuz, a key channel for a fifth of the world's oil supply, pushed global energy prices higher. A barrel of Brent crude oil surged 4.9% to $101.98, a significant increase from its pre-war level of around $70. Rising energy costs can impact consumer spending by reducing disposable income, which often leads to concerns for companies in the retail, travel, and leisure industries.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Consumer Discretionary - Casino Operator company Red Rock Resorts (NASDAQ: RRR) fell 4.2%. Is now the time to buy Red Rock Resorts? Access our full analysis report here, it’s free.
- Consumer Discretionary - Gaming Solutions company PlayStudios (NASDAQ: MYPS) fell 4.3%. Is now the time to buy PlayStudios? Access our full analysis report here, it’s free.
- Consumer Discretionary - Toys and Electronics company Bark (NYSE: BARK) fell 3.8%. Is now the time to buy Bark? Access our full analysis report here, it’s free.
- Consumer Discretionary - Media company fuboTV (NYSE: FUBO) fell 11.1%. Is now the time to buy fuboTV? Access our full analysis report here, it’s free.
- Consumer Discretionary - Toys and Electronics company Funko (NASDAQ: FNKO) fell 7.3%. Is now the time to buy Funko? Access our full analysis report here, it’s free.
Zooming In On fuboTV (FUBO)
fuboTV’s shares are extremely volatile and have had 38 moves greater than 5% over the last year. But moves this big are rare even for fuboTV and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 9% on the news that the market reacted negatively to its recent 1-for-12 reverse stock split, viewing the move as a signal of financial distress.
While fuboTV stated the goal was to make its shares more attractive to institutional investors, the action was interpreted as a sign of trouble. This perception was supported by the company's underlying financial health. Despite reporting a 24% year-over-year increase in revenue and an 18% rise in paid subscribers, the company also posted a negative operating cash flow of $200.3 million and troubling pre-tax profit margins of -18.5%. The earnings also missed targets, reinforcing concerns that the company was burning through cash despite its growth in other areas.
fuboTV is down 69% since the beginning of the year, and at $9.63 per share, it is trading 82.4% below its 52-week high of $54.72 from September 2025. Investors who bought $1,000 worth of fuboTV’s shares 5 years ago would now be looking at only $36.68.
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