Shares of fuboTV Inc. (FUBO) plummeted 5.08% in Wednesday's intraday trading session, as investors reacted to a scathing analysis highlighting significant concerns about the company's fundamentals. The sharp decline comes amid growing skepticism about the streaming service's ability to sustain its recent growth trajectory and achieve profitability.

A recent report outlined three primary reasons for investors to approach fuboTV with caution. First, the company's domestic subscriber growth has been underwhelming, averaging just 16.4% year-on-year over the past two years. This weak performance suggests potential challenges in demand and may force the company to lower prices or increase investments in product improvements, potentially hindering near-term profitability. Second, fuboTV's cash burn remains a significant concern, with the company posting an average negative free cash flow margin of 9.4% over the last two years. Lastly, the company's short cash runway exposes shareholders to the risk of potential dilution, as fuboTV may need to raise additional capital to continue operations.

While fuboTV's stock had experienced a remarkable 135% surge over the past six months, reaching $3.34 per share, today's sharp decline suggests that investors are reassessing the company's prospects. The streaming service, which specializes in live sports, news, and entertainment content, faces an uphill battle to prove its long-term viability in an increasingly competitive market. As the company struggles with subscriber growth and financial stability, investors appear to be heeding warnings about the stock's potential downside risks.