Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Breaking News

Oil falls as OPEC+ sticks to regular output increase

HubSpot Stock Has Never Looked So Good

By MarketBeat.com (Sam Quirke )Stock MarketsFeb 16, 2021 12:37AM ET
www.investing.com/analysis/hubspot-stock-has-never-looked-so-good-200560924
HubSpot Stock Has Never Looked So Good
By MarketBeat.com (Sam Quirke )   |  Feb 16, 2021 12:37AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

There’ll be more than a few HubSpot (NYSE:HUBS) investors chomping at the bit for markets to open again on Tuesday, having been closed on Monday for Presidents Day. The company’s Q4 earnings were released after Thursday’s session closed, and finished up 16% on Friday. Investors will have had a few days since to chew on the numbers before shares resume trading tomorrow and there’s every reason to think the bid will be just as strong.

That’s because those Q4’s numbers look good, very good. Revenue was up 35% on the year and played a big role in the bottom line EPS numbers smashing analysts’ expectations too. Adjusted operating margin was also a shining star and was more than 50% higher than the consensus. Full-year revenue and EPS guidance came in bullish, ahead of what analysts were expecting, and should do much to send shares higher in the coming shortened week.

HubSpot CEO Brian Halligan summed the quarter up well when he said:

"I am exceptionally proud of how the HubSpot team closed out the year in 2020. During the quarter we surpassed 100,000 total customers, and in December we crossed $1 billion in annual recurring revenue - two great milestones that reflect the determination of our team and the strength of our customer relationships."

Strong Potential

It was a solid quarter and a great way to close out a year that has been the makings of the company. Before COVID, shares were hovering around the $175 mark and well below their 2019 all-time highs. Since the lows of last March they’ve undergone a tremendous rally and have managed to tack on more than 450%. Every indication suggests that this rally is here to stay.

Management’s recent $27 million acquisition of business newsletter “The Hustle” and last year’s release of a content management product show just how focused they are on product rollouts and how nimble they can be. Rather than sitting back on their laurels and enjoying another year of 30% growth, they’re still getting after it and making sure HubSpot has as many revenue-generating strings in the bow as possible.

It also allows the company to position itself as the king of digital marketing, as its 4 core products encompass marketing, sales, services, and content. They’re not competing directly against the likes of Salesforce (NYSE:CRM) but instead have carved out a niche for themselves as a much more user-friendly CRM that can do a ton of other things too.

Fresh Upgrade

Mizuho didn’t wait around long and came out with an upgrade on Friday, moving shares from a Neutral rating to a Buy. They also upped their price target to $565, suggesting upside of some 15% from Friday’s closing price. Analyst Siti Panigrahi is particularly bullish on the company’s long-term prospects as HubSpot cements its position as a leading CRM platform. Thursday’s numbers removed any worries the firm had had about potential pains in its SMB client base, as those are the most exposed to COVID.

But with double-digit percentage growth on the year and raised forecasts, Panigrahi now sees HubSpot as a "significant beneficiary of an accelerated digital transformation trend," with long-term sustainable growth and margin expansion very achievable.

Wall Street clearly likes what they’re seeing and based on Friday’s jump it looks like investors are too.

Hubspot Inc Daily Chart
Hubspot Inc Daily Chart

Original Post

HubSpot Stock Has Never Looked So Good
 

Related Articles

HubSpot Stock Has Never Looked So Good

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email