FuboTV (FUBO) stock dropped over 20% after announcing plans for a reverse stock split. The plunge leaves shares down more than 30% this year. Despite this, long-term investors may find value in FUBO stock due to improving financials and the potential from a recent merger with Disney’s Hulu and Live TV.

With 6.2 million subscribers in North America, FuboTV remains a significant player in the pay television market. The company’s financials show promise, with adjusted EBITDA at nearly $78 million on a trailing-12-month basis. FUBO shares are trading at less than 0.4x annual revenue, making them a potentially cheap buy.

The merger with Disney’s streaming platform is expected to drive improvements in ad revenue. FUBO anticipates seeing synergies from this integration starting in the first quarter of 2026. Wall Street analysts believe the recent selloff of FUBO shares has gone too far, with a mean target suggesting a potential upside of 165% from current levels.

For risk-tolerant investors, the oversold conditions, Disney merger, and improving metrics present a tactical buying opportunity. The potential synergies and analyst targets indicate the current FUBO stock price may be undervalued. This information is provided for informational purposes and was originally published on Barchart.com.

Read more at Yahoo Finance: FuboTV Stock Plunges Deep Into Oversold Territory on Reverse Stock Split News. Should You Buy the Dip?