StubHub Stock (STUB) Plummets 20% Post-Debut Earnings—Wall Street’s Latest IPO Letdown?
Another day, another post-IPO bloodbath. StubHub's stock just nosedived 20% after its first earnings report as a public company—proving once again that Wall Street's hype machine often outpaces reality.
Investors got burned betting on the ticketing giant's debut. Now the question is: Will this be a temporary stumble or the start of a longer slide?
Remember folks—when the suits on the trading floor start chanting 'this time it's different,' grab your wallet and run.
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This lack of immediate guidance is notable because StubHub competes with major players like Ticketmaster, Seatgeek, and Vivid Seats. The hesitation to provide short-term projections could suggest that there is uncertainty about current demand or performance. In the third quarter, StubHub posted a net loss of $1.3 billion, mostly due to a $1.4 billion expense tied to stock compensation as it went public. Still, revenue ROSE 8% year-over-year to $468 million.
StubHub’s gross merchandise sales (the total value of tickets bought on its platform) reached $2.4 billion, up 11% from last year. If you exclude last year’s early sales for Taylor Swift’s massive “Eras Tour,” that figure jumps to 24% growth. While JPMorgan analysts, led by five-star analyst Doug Anmuth, lowered their price target from $24 to $22, they remain positive on the stock due to strong sales growth and increased market share based on the latest results.
Is STUB Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on STUB stock based on 10 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average STUB price target of $24.38 per share implies 63.1% upside potential.
