On August 14, HubSpot fell 5.11% in regular trading, trading at $228.785/share, with turnover of $93.53 million. The stock continued to face pressure following its Q2 earnings report and a wave of investment bank downgrades.
HubSpot reported Q2 adjusted EPS of $3.26 and revenue of $911.7 million, both exceeding market expectations. However, the company lowered its full-year revenue guidance, raising concerns about growth prospects. Following the report, multiple banks issued downgrades: Bernstein cut its rating from Outperform to Market Perform with a target price slashed from $381 to $220; BMO Capital similarly downgraded to Market Perform with a $215 target; JPMorgan reduced its target from $425 to $268; and Barclays lowered its target from $270 to $240.
The broader Application Software sector also traded lower, with Workday down 5.27%, Salesforce down 2.73%, and Strategy down 5.18%, amplifying sector-wide selling pressure on HubSpot.
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