MSFT - HubSpot: Google's Canceled Acquisition Is Driving A Much-Needed Valuation Reset
2024-07-12 14:09:17 ET
Summary
- HubSpot, Inc.'s stock has sharply fallen after Google's acquisition plans were shelved as of June 10th. Meanwhile, the company is also facing weaker demand and lower ASPs from its recent pricing updates.
- The company reported its Q1 FY24 earnings, where revenue and earnings grew 23% and 33% YoY respectively. However, its Net retention rate kept shrinking from the previous quarter.
- Although the company is driving a robust product innovation roadmap, while expanding its profitability landscape, I believe that short-term selling pressure will remain, making it a “hold.”.
Introduction & Investment Thesis
I last covered HubSpot, Inc. ( HUBS ) in March, when I reiterated my “Sell” rating on this company that makes inbound marketing software....
HubSpot: Google's Canceled Acquisition Is Driving A Much-Needed Valuation Reset