American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Hubspot stock price slowly forms a bullish pattern: what next?

by admin December 22, 2024
December 22, 2024
Hubspot stock price slowly forms a bullish pattern: what next?

Hubspot stock price has done well this year and is loitering near its highest level since December 2021. HUBS was trading at $720, and was slowly forming a bullish flag chart pattern, pointing to more gains in the coming months. This rally has brought its market cap to over $37 billion, making it one of the biggest companies in the SaaS industry. 

Growing company and gaining market share

Hubspot is a large company that offers software targeting small and large enterprises. Its solutions help companies in their marketing, and customer relations, and simplify other parts of their businesses. O

Hubspot is used widely globally by firms like eBay, DoorDash, Reddit, Tripadvisor, and Eventbrite. Its best-known service is one that lets companies to communicate with their customers on their websites. It is also a popular name in the marketing industry.

Hubspot’s business has grown over the years, and it now serves over 238,000 companies worldwide. This growth is also reflected in Hubspot’s financial statement, which shows that its annual revenue has grown from $674 million in 2019 to over $2.5 billion in the trailing twelve months. This performance partially explains why Google considered buying the company a few months ago. 

The most recent results showed that Hubspot’’s business was doing well as its revenue rose by 22% to $2.5 billion. That is an impressive growth trajectory for a company that was started in 2006. Hubspot’s customers grew by 23% to 238,000.

The company believes that its business has more room to run because the total addressable market stands at over $174 billion, higher than the current $76 billion.

It has invested in artificial intelligence as part of its growth trajectory. Its Breeze product is made of a copilot and agents that simplify how customers interact with its products. Ultimately, its goal is to ensure that AI powers all its operations in the future. 

Hubspot has also grown its margins, with the last financial results showing that its operating margin hit 19%.

Analysts are optimistic that Hubspot will have strong growth potential in the future. They expect that its quarterly results will get to $673 million, a 15.8% increase from the same period last year. It will then make $708 million in the next quarter.

Hubspot’s annual revenue is expected to be $2.6 billion, followed by $3.08 billion in the next financial year. These are strong numbers for a company that crossed the $1 billion just a few years ago.

Hubspot valuation concerns

A major concern about Hubspot is that its business is highly overvalued since it has struggled to make a profit over the years. Its annual loss in the last financial year stood at over $176 million, much higher than the $112 million it lost a year earlier. 

There are signs that Hubspot is now moving into profitability, as it made a $8.1 million profit in the last quarter. Analysts expect that Hubspot will make an earnings per share of $2.2 in the current quarter, up from $1.76 last year. The annual EPS is expected to come in at $7.9 followed by $8.55.

Hubspot has a market value of over $37 billion, giving it a forward P/E ratio of 78. This valuation multiple is higher than that of companies like NVIDIA that are seeing faster growth metrics.

The best approach to value a company like Hubspot that uses a SaaS business model is known as the rule of 40. This is an approach that looks at a company’s growth and margins. In this case, it has a forward growth metric of 20% and an operating margin of 19%, giving it a rule of 40 metric of 39%. 

Hubspot stock price analysis

The weekly chart shows that the HUBS share price has staged a strong comeback in the past few months. It recently crossed the important resistance level at $693.53, its highest point on April 1. 

The stock has also formed a bullish pennant chart pattern, a popular continuation sign. It is also being supported by 50-week and 100-week moving averages. Therefore, the path of the least resistance for the stock is bullish, with the next point to watch being at $800.

The post Hubspot stock price slowly forms a bullish pattern: what next? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Expensive Asana stock price could surge by 195% in 2025
next post
Southeast Asia lags behind in AI funding despite $60 billion global boom

Related Posts

Crypto market slides despite Trump’s Bitcoin reserve announcement

March 7, 2025

European stocks follow global peers after US Fed...

December 19, 2024

Alibaba stock price analysis: gears for a surge...

May 12, 2025

Long LYTS: LYTS Rebounds from Key Support Amid...

April 27, 2025

Alibaba unveils Qwen 2.5 AI model, says it...

January 29, 2025

Shopify stock price giant megaphone points to a...

March 20, 2025

Sensex, Nifty see choppy start as global jitters...

April 22, 2025

WBD stock analysis: Warner Bros may surge 140%...

February 24, 2025

On the sidelines of a pricier Kentucky Derby,...

May 6, 2024

Getty Images stock price has crashed: will it...

March 16, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,002)
    • Investing (2,453)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved