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].

Group 1 - StubHub Holdings, Inc. (NYSE:STUB) is an online marketplace for buying and reselling tickets to various live events, including sports, concerts, and theater [2] - The company's recent IPO saw its stock price fall below the offering price shortly after going public, closing at $22, down from the initial offering price of $23.50 [1] - The decline in stock price is viewed as a potential indicator of market froth, which may help temper investor enthusiasm [1] Group 2 - There is a belief that while StubHub has investment potential, certain AI stocks may offer greater upside potential and carry less downside risk [3]

Group 1 - StubHub Holdings, Inc. (NYSE: STUB) shares have experienced significant losses, dropping over 10% following its IPO due to investor concerns over a rapid slowdown in growth [1] - The company is part of a broader investment group that focuses on capitalizing on major corporate events such as IPOs, mergers & acquisitions, and earnings reports [1] - The investment group provides coverage of approximately 10 major events each month, aiming to identify the best investment opportunities [1]

Group 1 - The recent IPO market in the US has seen a resurgence, with several stocks experiencing significant gains on their debut, although some have since retreated [1] - StubHub's stock price fell to $22 on its first trading day, below the IPO price of $23.5, resulting in a 6.4% decline and a market capitalization of approximately $8.1 billion [1] - Despite the stock price drop, analysts consider the current valuation reasonable given StubHub's history of being acquired by eBay for $310 million in 2007 and later sold to Viagogo for over $4 billion in 2020 [1] Group 2 - StubHub's sales grew by only 3% in the first half of the year, reaching $827.9 million, while the company projects nearly $1.8 billion in revenue for the full year 2024, a year-on-year increase of nearly 30% [2] - The North American ticket resale market is valued at approximately $18 billion annually, with the international market at $23 billion [2] - StubHub claims to be the "largest secondary ticketing company for live events globally," holding nearly 50% market share in North America, with Viagogo contributing about 15% to its revenue [2] Group 3 - StubHub faces intense competition in the secondary ticket market, particularly from Ticketmaster, which dominates the primary ticketing market with an estimated share exceeding 50% [3] - StubHub has set a long-term financial goal of 20% annual growth in gross merchandise sales, although this target appears overly optimistic given current trends and Ticketmaster's market strength [3] - Some early investors remain optimistic about StubHub's potential, likening it to "asset-light" companies like Airbnb that can generate stable income in the future [3]

Company Overview - StubHub Holdings experienced a challenging stock-market debut, with shares dropping as much as 6% after an initial surge of 7% to over $25, ultimately closing at $22 after pricing at $23.50 [1][4] - The IPO raised approximately $800 million, indicating significant investor interest despite the initial volatility [1] Market Context - The debut coincided with the Federal Reserve's decision to cut interest rates by 25 basis points, but the market's reaction was muted, affecting overall trading momentum [2][3] - StubHub's performance on its first trading day did not match the enthusiasm seen in other recent IPOs like Figma and Klarna, suggesting a potential decline in investor enthusiasm for new offerings [2][4] Revenue Outlook - CEO Eric Baker indicated that federal regulations regarding ticket-pricing transparency could lead to a one-time revenue hit of approximately 10% for the company [3] - Despite the anticipated revenue dip, Baker expressed optimism about the company's long-term prospects, suggesting a reset in the market could lead to recovery [3]

Group 1: Company Overview - Stubhub Holdings raised $800 million in its IPO, but the stock price fell by 6.4% on the first day of trading, closing at $22 per share after an initial rise [1] - The company had initially planned a direct listing with a valuation exceeding $13 billion but faced delays due to market volatility and external factors [1][2] - Stubhub has focused on secondary ticket sales since its founding in 2000 and has recently expanded into primary ticket sales, although this segment remains small [2] Group 2: Financial Performance - For the six months ending June 30, the company reported revenues of $827.9 million and a net loss of $76 million, compared to revenues of $803.5 million and a net loss of $24 million in the same period last year [2] - Total merchandise sales (including fees and seller earnings) increased to $4.4 billion, up from $3.9 billion year-over-year [2] Group 3: Market Context and Regulatory Environment - The U.S. IPO market has been strong recently, raising approximately $5.3 billion since September 1, excluding special purpose acquisition companies [1] - The ticketing industry is under increased scrutiny from U.S. regulators, with investigations into practices by Live Nation's Ticketmaster and proposed legislation aimed at preventing resale of tickets not held by resellers [2] - Stubhub's CEO has advocated for the "Better Online Ticket Sales Act" to promote secure and democratic ticket distribution [2] Group 4: Ownership and Corporate Structure - Stubhub was acquired by eBay for $310 million in 2007 and later sold to Viagogo for $4.05 billion in 2019, with the two companies integrating after regulatory approval in 2022 [3] - The ownership structure shows CEO Eric Beck holding 4.2% of Class A shares, with significant voting power due to Class B shares, resulting in a total voting power of 88.3% [3] - The IPO was led by JPMorgan and Goldman Sachs, with participation from over ten other banks, and the stock is traded on the New York Stock Exchange [3]

Core Insights - StubHub went public with an IPO price of $23.50, closing 6% below that price, which values the company at over $7 billion, highlighting the perseverance of its co-founder Eric Baker [1] Company History - StubHub was co-founded by Eric Baker and Jeff Fluhr in 2000 during their time at Stanford, shortly after the dotcom bubble burst [1] - Baker was pushed out of the company in 2004 due to differences in vision with Fluhr [2] - In 2005, Baker founded Viagogo in London, aiming to merge it with StubHub in the future [3] - In 2019, eBay spun off StubHub, and Baker acquired it for $4.05 billion with backing from investors [3] Impact of COVID-19 - The COVID-19 pandemic severely impacted StubHub, leading to a collapse in revenue due to the cancellation of live events [4][6] - The company managed to survive the pandemic and saw a significant rebound in revenue as live events resumed [6] Recent Performance - StubHub's revenue grew by 10% to $397.6 million in Q1 2025 compared to the same period last year, driven by high-demand events like Taylor Swift's Eras Tour and the Super Bowl [6] - Baker reflected on the company's journey and challenges faced, including the impact of COVID-19 [7] Ownership Structure - Eric Baker owns 4.7% of StubHub, while investors Madrone Partners, WestCap, and Bessemer Venture Partners hold 24.5%, 12.3%, and 8.8% respectively [7]

Core Insights - Stubhub's IPO opened at $24.96, rising over 8% to $25.43, with a market capitalization of $9.4 billion [1] - The IPO price was set at $23.50 [1] - For the six months ending June 30, Stubhub's gross merchandise volume increased to $4.4 billion, up from $3.9 billion in the same period last year [1]

Company Overview - StubHub shares rose about 8% in their NYSE debut but closed 6.4% below the IPO price, valuing the company at $8.09 billion [1][2] - The company raised nearly $800 million by selling 34 million shares, pricing within the marketed range of $22 to $25 [3] Market Context - The IPO market has seen a resurgence this fall, with notable debuts from companies like Klarna and Figure, despite concerns over inflation and labor market issues [4] - StubHub's revenue grew 3% in the first half of 2025, which is lower than Live Nation's 6% growth during the same period [5] Competitive Landscape - StubHub's valuation is nearly double the $4.05 billion that viagogo paid to acquire it from eBay [2] - Rival Vivid Seats has seen a significant decline, down nearly 82% this year after a 27% drop last year, indicating challenges in the public market for ticket-selling platforms [6] Industry Trends - The ticket-selling industry is experiencing increased consumer demand for live events, but also heightened scrutiny regarding reseller practices, particularly following events like Taylor Swift's "The Eras Tour" [7]

Group 1 - Shares of StubHub rose about 8% in their New York Stock Exchange debut on Wednesday [1] - The ticket reseller marketplace is valued at $9.32 billion following its debut [1] - This performance adds to a streak of positive day-one receptions for technology-related companies [1]