On August 6, HubSpot declined 21.62% in regular trading, trading at $186.2/share, with turnover of $81.78 million. The sell-off was driven by the company lowering its full-year revenue guidance despite delivering a Q2 earnings beat, compounded by execution concerns surrounding its agent-first strategic transformation.
Specifically, Q2 adjusted EPS came in at $3.26, beating the $3.02 consensus by 7.95%, while revenue of $911.7 million topped the $898 million estimate. Full-year adjusted EPS guidance of $13.23-$13.31 also exceeded the $13.10 consensus. However, the company reduced its full-year revenue outlook to $3.678-$3.686 billion, reigniting growth sustainability fears during its business transformation period.
Multiple institutions subsequently cut ratings and targets. Bernstein downgraded the stock from Outperform to Market Perform, slashing its target from $381 to $220. Morgan Stanley trimmed its target from $350 to $287, while Barclays lowered its target from $270 to $240. Notably, the stock had previously plunged 24% after Q1 results on similar guidance concerns, underscoring persistent market skepticism toward the transition outlook.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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