StubHub: More Compelling After The Drop, With Profit Expected To Rebound In 2026 (Rating Upgrade)

Gary Alexander33.44K FollowersFollow5ShareSavePlay(9min)Comment(1)SummaryStubHub has fallen over 50% from IPO, now trading near $9, creating a more compelling valuation.I upgrade STUB to neutral, citing a mix of positive drivers—Direct Issuance technology, live event tailwinds—and persistent risks.Key risks include a highly competitive market, reliance on marquee events, and a heavy 4.5x net leverage ratio.STUB trades at 11.1x FY26 EV/EBITDA, but near-term upside is limited until margin recovery and efficiency gains materialize. wdstock/iStock Editorial via Getty Images This year, growth stocks have fallen hard. Investors have taken any and all reasons as a signal to sell, with mounting worries on the state of the economy, the impact of AI, and rising geopolitical tensions. The depth of theThis article was written byGary Alexander33.44K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.