Stock of the Day

May 9, 2022

HubSpot (HUBS)

$726.43
-$21.57 (-2.9%)
Market Cap: $39.01B

About HubSpot

HubSpot, Inc., together with its subsidiaries, provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company's CRM platform includes Marketing Hub, a toolset for marketing automation and email, social media, SEO, and reporting and analytics; Sales Hub offers email templates and tracking, conversations and live chat, meeting and call scheduling, lead and website visit alerts, lead scoring, sales automation, pipeline management, quoting, forecasting, and reporting; Service Hub, a service software designed to help businesses manage, respond, and connect with customers; and Content Management Systems Hub enables businesses to create new and edit existing web content. It offers Operations Hub, which is designed to unify customer data, automate business processes, data cleanup, and provide customer insights and connections; and Commerce Hub, a B2B commerce suite. In addition, the company provides professional services to educate and train customers on how to utilize its CRM platform; and customer success, as well as phone and/or email and chat-based support services. It serves mid-market business-to-business companies. The company was incorporated in 2005 and is headquartered in Cambridge, Massachusetts.

HubSpot Bull Case

Here are some ways that investors could benefit from investing in HubSpot, Inc.:

  • HubSpot, Inc. has received a "buy" rating from multiple analysts, indicating strong confidence in the company's future performance.
  • The stock price is currently at $776.42, which is significantly higher than its one-year low of $434.84, suggesting a positive trend in value.
  • Analysts have set an average target price of $863.96 for HubSpot, Inc., indicating potential for further appreciation in stock value.
  • HubSpot, Inc. has a strong market presence in the cloud-based customer relationship management (CRM) sector, which is expected to grow as businesses increasingly adopt digital solutions.
  • Recent upgrades in price targets by firms like Jefferies and Truist Financial reflect growing optimism about HubSpot's growth prospects and market position.

HubSpot Bear Case

Investors should be bearish about investing in HubSpot, Inc. for these reasons:

  • HubSpot, Inc. reported an EPS of $0.20, missing analysts' expectations of $2.18, which raises concerns about its profitability and operational efficiency.
  • The company has a net margin of only 0.17%, indicating that it retains a very small portion of revenue as profit, which could be a red flag for investors.
  • HubSpot, Inc. has a negative return on equity of 0.07%, suggesting that the company is not effectively generating profits from its equity investments.
  • Despite a generally positive outlook, five analysts have rated the stock as a hold, indicating some caution among market experts regarding its immediate growth potential.
  • Insider selling activity, with significant shares sold by directors, may signal a lack of confidence in the company's short-term performance among those closest to the business.

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