Core Viewpoint - StubHub, a ticket resale marketplace, has struggled since its IPO in September, with its stock price declining significantly from its initial offering price of $23.50 to under $11 by mid-November [4][11]. Company Overview - StubHub has been a market leader in the ticket resale industry since its inception in 2000 and was previously acquired by eBay for $310 million [7]. - The company operates a scalable business model that generates revenue through fees on sales in a two-sided marketplace [8]. Financial Performance - In its first results as a public company, StubHub reported gross merchandise sales (GMS) of $2.43 billion, an 11% increase, with revenue rising 8% to $468.1 million, surpassing analyst expectations [9]. - Adjusted EBITDA increased by 21% to $67.5 million, with the adjusted EBITDA margin improving from 13% to 14% [10]. Market Challenges - The lack of fourth-quarter guidance disappointed Wall Street, leading to analysts lowering their price targets for the stock [11]. - Regulatory pressures in the U.K. could significantly impact StubHub's business, including a potential ban on selling tickets above face value and an investigation into its pricing practices [12]. Valuation and Future Outlook - With a market cap of $4 billion, StubHub's stock is currently valued at 15 times its run-rate EBITDA, suggesting it is reasonably priced [14]. - The company must address growth concerns to reassure investors and recover its stock price amid pressures in the U.K. and potential consumer weakness in the U.S. [14].