:max_bytes(150000):strip_icc()/GettyImages-2235930503-d1140a0204a04730a944c3314fa418b7.jpg "Why StubHub’s Stock Plunged Over 20% After Its First Post-IPO Quarterly Report")
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Key Takeaways
- StubHub shares fell sharply Friday, a day after the ticket sales platform posted its first quarterly report since going public.
- The company did not provide an outlook for the current quarter, and said it will give 2026 guidance with its next report.
Shares of ticket reseller StubHub (STUB) plunged Friday after the company declined to provide guidance for the current quarter with its first earnings report as a public company.
The stock dropped over 20% to finish Friday’s session near $15, its lowest close since the company made its trading debut in September.
CFO Connie James told investors during Thursday’s earnings call that the company plans to issue a 2026 outlook when it reports fourth-quarter results in about three months.
Why This Is Significant
StubHub is one of the largest ticket selling platforms in the U.S., competing with others like Live Nation’s Ticketmaster, Seatgeek, and Vivid Seats, and its decision to withhold its guidance could point to concerns about its performance and changes in demand.
StubHub said it recorded a net loss of $1.3 billion in the third quarter, but said it took a charge of about $1.4 billion awarding stock to its employees as it went public in the quarter. StubHub made $468 million in revenue, up 8% from the same time a year ago, when StubHub was still private.
StubHub’s gross merchandise sales, or the total value of tickets consumers bought through its platform, was $2.4 billion in the quarter. That was up 11% year-over-year, or up 24% excluding the impact of tickets that were sold in the same quarter last year for Taylor Swift’s record-breaking “Eras Tour.”
JPMorgan analysts, trimming their price target to $22 from $24, suggested StubHub’s decision to withhold its guidance could point to softness in the current quarter. However, the analysts said they’re still bullish on the stock, considering the sales growth and market share gains that the third-quarter’s results showed.
This article has been updated since it was first published to reflect more recent stock prices.
