StubHub Stock Crashes 25% Post-IPO—Here’s Why Investors Are Fleeing

StubHub's first earnings report as a public company sent shockwaves through Wall Street—and not the good kind. Shares nosedived 25% as reality bit harder than post-IPO hype.

The ugly truth behind the plunge:

Live events demand is cooling faster than a scalper's margins after a lineup change. The numbers don't lie—and neither do panicked shareholders dumping stock like last-minute Taylor Swift tickets.

Wall Street's verdict?

Another 'disruptor' learning the hard way that public markets punish growth-at-all-costs mentalities. But hey—at least the bankers got their fees.

One thing's clear: In the tug-of-war between hype and fundamentals, gravity always wins. Eventually.

Key Takeaways

• StubHub shares fell sharply Friday, a day after the ticket sales platform posted its first quarterly report since going public.
• The company did not provide forecasts for the current quarter, and said it will give 2026 guidance with its next report.

Shares of ticket reseller StubHub (STUB) plunged Friday after the company declined to provide guidance for the current quarter with its first earnings report as a public company.

The stock was down about 25% around $14 in recent trading, after hitting its lowest levels since the company made its trading debut in September.

CFO Connie James told investors during Thursday's earnings call that the company plans to issue a 2026 outlook when it reports fourth-quarter results in about three months.

Why This Is Significant

StubHub is one of the largest ticket selling platforms in the U.S., competing with others like Live Nation's Ticketmaster, Seatgeek, and Vivid Seats, and its decision to withhold its guidance could point to concerns about its performance and changes in demand.

StubHub said it recorded a net loss of $1.3 billion in the third quarter, but said it took a charge of about $1.4 billion awarding stock to its employees as it went public in the quarter. StubHub made $468 million in revenue, up 8% from the same time a year ago, when StubHub was still private.

StubHub's gross merchandise sales, or the total value of tickets consumers bought through its platform, was $2.4 billion in the quarter. That was up 11% year-over-year, or up 24% excluding the impact of tickets that were sold in the same quarter last year for Taylor Swift's record-breaking "Eras Tour."

JPMorgan analysts, trimming their price target to $22 from $24, suggested StubHub's decision to withhold its guidance could point to softness in the current quarter. However, the analysts said they're still bullish on the stock, considering the sales growth and market share gains that the third-quarter's results showed.

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