HUBS

HubSpot Inc

TMT


Presented:01/24/2019
Price:$149.92
Cap:$5.88B
Current Price:$548.21
Cap:$28.15B

Presented

Date01/24/2019
Price$149.92
Market Cap$5.88B
Ent Value$5.60B
P/E RatioN/A
Book Value$5.90
Div Yield0%
Shares O/S39.23M
Ave Daily Vol528,557
Short IntN/A

Current

Price$548.21
Market Cap$28.15B
HubSpot, Inc. provides cloud-based marketing and sales software platform that enables businesses to deliver an inbound experience. It operates through the following geographical segments: Americas, Europe, and Asia Pacific. The company was founded by Brian Halligan and Dharmesh Shah on April 4, 2005 and is headquartered in Cambridge, MA.

Publicly traded companies mentioned herein: HubSpot Inc (HUBS), salesforce.com Inc (CRM)

Highlights

The presenter is short shares of HubSpot Inc (HUBS), which sells SaaS marketing products to SMBs through a “freemium” model. The stock took a hit after peaking at ~$160 in September 2018, but it has recently recovered and is once again approaching all-time highs on the back of historically strong SMB sentiment and aggressive guidance. The presenter thinks shares are overvalued relative to more attractive peers and believes the HUBS growth story is overstated. He expects growth deceleration due to SMB confidence reversion, increased discounting, lack of product stickiness, and structural issues that could continue to strangle margins. Using a 20x multiple on his 2022 FCF estimate, discounted back to the present results in a “more reasonable” price target in the range of $90 – $100 per share.

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Idea Discussion

Commentor 1 - 2 weeks ago

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