🔥 Read this insightful post from Investopedia | Expert Financial Advice and Markets News 📖
📂 Category: Stocks & Bond News,Markets News,News
📌 Here’s what you’ll learn:
Key takeaways
- StubHub shares fell sharply on Friday, a day after the ticket sales platform published its first quarterly report since going public.
- The company did not provide forecasts for the current quarter, and said it would provide guidance for 2026 in its next report.
Shares of ticket reseller StubHub (STUB) fell on Friday after the company declined to provide guidance for the current quarter with its first earnings report as a public company.
The stock fell more than 20% to end Friday’s session near $15, its lowest close since the company first began trading in September.
CFO Connie James told investors during an earnings call Thursday that the company plans to issue a forecast for 2026 when it reports fourth-quarter results in about three months.
Why is this important?
StubHub is one of the largest ticketing platforms in the US, competing with others such as Live Nation’s Ticketmaster, Seatgeek and Vivid Seats, and its decision to withhold its guidance may indicate concerns about its performance and changes in demand.
StubHub said it had a net loss of $1.3 billion in the third quarter, but said it took on about $1.4 billion to grant stock to its employees when it went public this quarter. StubHub had revenue of $468 million, up 8% from this time last year, when StubHub was still a private company.
StubHub’s gross merchandise sales, or the total value of tickets purchased by consumers through its platform, were $2.4 billion in the quarter. This represents an 11% increase year over year, or a 24% increase excluding the impact of tickets sold in the same quarter last year for Taylor Swift’s record-breaking “Eras Tour.”
JPMorgan analysts, who trimmed their price target to $22 from $24, noted that StubHub’s decision to withhold its guidance could signal weakness in the current quarter. However, analysts said they remain optimistic about the stock, considering the sales growth and market share gains shown by third-quarter results.
This article has been updated since it was first published to reflect the most recent stock prices.
💬 Share your opinion below!
#️⃣ #StubHub #stock #fell #postIPO #quarterly #report
