Why fuboTV Stock Plunged on Friday

Shares of fuboTV (NYSE: FUBO) traded lower on Friday, with the stock falling as much as 10.1% earlier in the session, ultimately ending the trading day down 8.7%. The streaming video specialist slumped when the company revealed plans to sell $500 million worth of stock.

The news wasn't well received by current investors. With a current market cap of roughly $4.08 billion, the sale could represent dilution of 12.5% for existing shareholders. While seeing the value of your investment diluted is never fun, the potential for a secondary offering shouldn't be a surprise to those who follow fuboTV.

Image source: Getty Images.

Source Fool.com