TLDR
- StubHub stock plunged 23% to $14.51 on Friday, now trading 38% below its September IPO price of $23.50
- The company reported a Q3 loss of $4.27 per share, missing estimates, though revenue of $468.1 million beat expectations
- StubHub declined to provide Q4 guidance, citing shifts in concert tour timing, with full 2026 outlook delayed until early next year
- BofA Securities downgraded the stock to Neutral and slashed its price target from $25 to $19 due to lack of visibility
- Third-quarter gross merchandise sales hit $2.43 billion, topping analyst estimates of $2.36 billion
StubHub shares took a beating on Friday. The ticket reseller saw its stock drop 23% to $14.51.
The decline came after the company reported earnings and dropped a bombshell. Management won’t provide guidance until early 2026.
CEO Eric Baker called the company’s debut quarter as a public entity strong. But investors weren’t buying it.
The stock now trades 38% below its IPO price of $23.50 from September. That’s a rough start for any newly public company.
Earnings Miss But Revenue Beats
StubHub reported a third-quarter loss of $4.27 per share. Wall Street had expected a loss of $2.87 per share.
Revenue told a different story. The company brought in $468.1 million, beating analyst estimates of $451.8 million.
Gross merchandise sales reached $2.43 billion. Analysts had projected $2.36 billion.
These sales represent the total dollar value buyers paid for tickets. It’s a key metric for the business.
CFO Constance James pointed to timing issues. The company is coming off the Taylor Swift Eras Tour, which boosted 2024 results.
Several large tours that typically launch in Q4 went on sale earlier. They hit the market in late September instead.
Wall Street Reacts to Uncertainty
BofA Securities analyst Justin Post wasn’t impressed. He downgraded StubHub from Buy to Neutral.
His price target dropped from $25 to $19. Post cited near-term uncertainty as the main issue.
“We were looking for increasing visibility on growth drivers,” Post wrote. Instead, he found more questions than answers.
Wedbush analyst Scott Devitt also cut his price target. He lowered it from $25 to $22 but kept an Outperform rating.
Devitt suggested it might take several quarters for investor confidence to return. The company needs either more transparency or clear business improvement.
Not everyone turned bearish though. Goldman Sachs analyst Eric Sheridan maintains a Buy rating with a $45 price target.
Sheridan views StubHub as well-positioned in the growing ticketing market. He believes consumers continue prioritizing experiences over products.
Baker told investors the company would share 2026 guidance on its next earnings call. He said management expects to navigate current pricing challenges by May 2026.
The company noted strong ongoing demand for live events. But the timing shift in concert sales creates uncertainty for Q4 performance.
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