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It’s a tough day in the markets, with major indices bleeding red. However, some stocks are down worse than others. Among those leading the decline is FuboTV (NYSE:FUBO), sinking on news that the streaming platform was hit by a cyberattack during the France-Morocco semifinal World Cup match. Shares of FUBO stock are down approximately 7% at the time of writing.
This sort of headline certainly isn’t what investors want to see. While service was reportedly restored last night, the outage created notable angst among both users and investors.
In an update today, the company noted that it’s working with law enforcement to investigate the cause of this outage. It appears that a criminal cyberattack is behind it.
Let’s dive into what investors may want to make of this news today.
FUBO Stock Dives on Cyberattack
Whoever was behind the attack on FuboTV certainly picked a prime time to coordinate this outage. While some initial speculation surrounded the inability of FuboTV’s networks to handle increased viewership volume, it appears that an attack was detected shortly after reports circulated that this game was offline. It also appears that service was restored in a relatively efficient manner, leading to some significant investor uncertainty.
On the one hand, cyberattacks are becoming more commonplace than ever. Major companies get hacked all the time, and users of many online services are used to receiving notices that they need to change their passwords. Thus, the bull case for FUBO stock is that this 7% dip today may be a buying opportunity. That is, for those who believe in the company’s long-term growth prospects.
The thing is, FuboTV is a company that’s been among the hardest-hit from this year’s bear market. Streaming companies in general are less attractive to investors these days due to their relatively high capital costs, uncertain margins, and duration risk. Adding cybersecurity risk to the list is just one too many risks for many investors to take.
Thus, today’s decline appears to have pushed many investors who were on the fence to the more bearish camp. We’ll have to watch this company to see if it can post a recovery. However, considering FUBO stock is down approximately 85% on a year-to-date basis alone, the probability of such a rally appears to be getting slimmer and slimmer.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.