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].

Core Insights - StubHub's shares fell 5% in after-hours trading following its first quarterly results post-IPO, indicating market reaction to financial performance [1] - The company reported an 8% increase in revenue year-over-year, reaching $468.1 million, surpassing the expected $452 million [4] Financial Performance - StubHub recorded a net loss of $1.33 billion, equating to a loss of $4.27 per share, significantly higher than the net loss of $45.9 million, or 15 cents per share, from the same period last year [2] - The substantial loss was attributed to a one-time stock-based compensation charge of $1.4 billion related to its IPO [2] - Gross merchandise sales (GMS) increased by 11% year-over-year to $2.43 billion; when excluding the impact of the previous year's Taylor Swift Eras Tour, GMS growth was 24% [2][3] Stock Performance - StubHub's stock closed at $18.82, reflecting a decline of approximately 20% from its IPO price of $23.50 [3]

Core Insights - The progress in ending the U.S. government shutdown has sparked optimism for more companies to go public before Thanksgiving, with at least six companies, including Medline Inc., having submitted IPO applications [1][2] - Medline Inc. is expected to be the largest IPO in the U.S. this year, with plans to begin formal marketing as early as Wednesday [2][4] - The IPO market faces challenges, including potential legislative gridlock in the Senate and a backlog of regulatory work once government operations resume [4] Group 1: IPO Market Dynamics - The longest government shutdown in history may lead to the shelving of alternative IPO strategies adopted during the shutdown, returning to normal IPO processes [2] - Despite the potential for IPOs before Thanksgiving, there are numerous obstacles, including limited working days in 2025, increased market volatility, and mixed performance of recent IPOs [4] - The average weighted return for IPOs priced in Q4 2025 is only 6%, compared to 22% for IPOs in the same period this year [5] Group 2: Future Outlook - The clarity around government shutdowns, tariff policies, and potential interest rate cuts may boost the IPO market in the remaining windows of the year [6] - Analysts predict that 2025 will be a favorable year for new stock offerings, with promising prospects for 2026 as well [6]

Core Insights - The recent uptick in US-listed initial public offerings (IPOs) includes notable companies like Klarna, StubHub, and Netskope, indicating potential optimism for the fall IPO market [1] - However, the IPO market is unlikely to return to the exuberance seen in 1999, as a prolonged slump in listings has been influenced by high interest rates, inflation, and tariff uncertainties [2] - The number of US companies listed on stock exchanges has halved since the late 1990s, with regulatory burdens often cited as a reason for this decline [3] Regulatory Impact - Research from Columbia Business School indicates that regulatory costs account for only 7.3% of the decline in IPOs, suggesting that the impact of regulations is overstated [4] - Even if all post-2000 regulatory costs were eliminated, the decline in publicly listed companies would remain largely unchanged [4] Private Funding Dynamics - The significant increase in available private funding from venture capital and private equity is a primary reason companies are choosing to stay private longer [4] - Analysts predict that private equity will outperform public markets, with Bain & Company forecasting private market assets to grow at more than twice the rate of public ones, potentially reaching $65 trillion globally by 2032 [4] - The trend of high-growth companies remaining private could limit public investors' access to gains typically reserved for venture capital and private equity investors [4]