Core Insights - HubSpot's shares fell 17.1% after reporting third quarter earnings, despite a revenue of $809.5 million, a 20.9% year-on-year increase, and adjusted earnings per share of $2.66, both surpassing analyst estimates [1] - The company's fourth quarter revenue guidance was slightly above analyst forecasts, but investor expectations were not met, leading to a sell-off [1] Company Performance - HubSpot's revenue for the third quarter was $809.5 million, reflecting a 20.9% increase year-on-year [1] - Adjusted earnings per share were reported at $2.66, exceeding expectations [1] - The revenue guidance for the upcoming fourth quarter was slightly above analyst forecasts, indicating continued growth potential [1] Market Reaction - The significant drop in HubSpot's stock price indicates that investor expectations were high, and the results were perceived as insufficient to justify the stock's valuation [1] - HubSpot's shares have shown volatility, with 18 moves greater than 5% over the past year, highlighting the impact of this news on market perception [3] Broader Market Context - The tech-heavy Nasdaq index fell approximately 1.4%, reflecting a wave of caution in the market, particularly affecting high-growth technology companies [4] - Investors are engaging in profit-taking due to concerns over stretched valuations following a surge in AI-related stocks [4] - Leadership at Goldman Sachs and Morgan Stanley has indicated the possibility of a market correction in the coming years, viewing it as a healthy feature of a long-term bull market [5]