Core Insights - StubHub, co-founded in 2000, has transformed into a global ticketing leader, connecting fans to live events across more than 200 countries and territories [1] - The company is shifting from a resale model to direct ticket issuance, targeting a $153 billion market opportunity [3][6] - Analysts are optimistic about StubHub's growth potential, with Goldman Sachs setting a price target of $46, indicating over 100% upside [2][17] Company Overview - StubHub Holdings operates under the StubHub and Viagogo brands, serving as the world's leading second-hand ticket marketplace [1] - The company went public on September 17, 2025, raising approximately $800 million despite a rocky start, with shares initially down 6.8% on the first day [7][8] Financial Performance - In the first half of 2025, StubHub reported gross merchandise sales of $4.38 billion, up from $3.94 billion year-over-year, while total revenue increased by 3% to $827.9 million [10] - However, net losses widened significantly, with a loss of $111.8 million in H1 2025 compared to $50.2 million the previous year [11] - Q2 2025 saw a net loss of $75.9 million, reflecting higher operational costs and a slight revenue dip of 3% year-over-year [12] Market Trends - The online event ticketing market is projected to grow from $85.4 billion in 2025 to $102.8 billion by 2030, with a compound annual growth rate (CAGR) of 3.8% [4] - The demand for seamless access to live events continues to rise, despite increasing regulatory scrutiny [4][5] Analyst Ratings - Analysts have initiated coverage on STUB stock with a consensus "Strong Buy" rating, highlighting its potential in the direct ticketing market [21] - Price targets vary, with a consensus target of $27.80 suggesting a 34% upside, while Goldman Sachs' target of $46 implies a potential rally of 122% [22] Strategic Initiatives - StubHub's expansion into direct ticket issuance is seen as a critical growth driver, with the potential to reshape how fans access live entertainment [19][24] - The company aims to leverage AI-driven insights and enhance event management to improve ticket discovery and purchasing [6]

Core Viewpoint - StubHub's stock has seen a positive response from analysts following its IPO, with a majority recommending buy ratings despite initial trading struggles [1][2][3]. Analyst Coverage - At least 12 analysts have initiated coverage of StubHub, with 11 recommending buy-equivalent ratings and one maintaining a neutral stance [2]. - StubHub's stock rose nearly 5% to $19.82 after the initiation of coverage [2]. Stock Performance Post-IPO - StubHub's stock has faced challenges since its IPO on September 17, closing the first day 6% below the IPO price of $23.50 and down 20% from the IPO price by the end of the previous week [3]. - BofA analyst Justin Post set a buy rating with a price target of $25, indicating a more optimistic outlook compared to the stock's early performance [3]. Market Position and Growth Potential - StubHub is the largest secondary ticket marketplace in North America, holding close to 50% market share [4]. - Analysts expect strong revenue growth driven by the resale market, share gains, and new business initiatives, with BofA projecting a 29% revenue growth in 2024 [5]. - Evercore ISI analyst Mark Mahaney set a price target of $29, highlighting StubHub's robust financials and high gross margins of 81% in 2024 [5]. Direct Issuance Strategy - A key focus for StubHub is its ability to grow its direct ticket issuance business, which faces competition from major players like TicketMaster [7]. - The total addressable market for direct issuance and unsold tickets is estimated at $127 billion, compared to $30 billion for secondhand ticket sales [8]. - Analysts emphasize the importance of execution in expanding this segment over the next 12-24 months [8]. Company Background - StubHub was founded in 2000 and has undergone significant ownership changes, being acquired by eBay for $310 million in 2007 and later sold for approximately $4 billion to Viagogo in 2020 [9]. - The company reported a revenue increase of 29.5% in 2024, reaching $1.77 billion, with a net loss of $22.2 million in Q1 of this year [10].