StubHub (STUB) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
StubHub NYSE: STUB reported higher first-quarter revenue and profitability as management said the ticket marketplace is benefiting from scale, marketing efficiency and healthy demand for live events.
Shares of StubHub (STUB) surged Thursday after the ticketing marketplace reported stronger-than-expected first-quarter earnings, fueled by rising ticket demand and improving profitability that helped ease investor concerns following a prolonged stock decline. The stock jumped as much as 21% during the session and was recently trading around $9.64, putting shares on pace for their largest daily percentage gain on record, according to Dow Jones Market Data.
StubHub (NYSE:STUB) shares surged about 19% on Thursday morning after the ticketing marketplace reported first quarter results that topped Wall Street expectations on both revenue and profitability, while reaffirming its full-year outlook. The company reported revenue of $446 million for the quarter ended March 31, 2026, up 12% year-over-year and above analyst expectations of about $425 million.
The company broke its string of quarterly losses.
StubHub Holdings (NYSE:STUB) shares surged, last seen up 18.4% to trade at $8.93, after the ticket reseller posted a profitable first quarter, reporting net income of $48 million, compared to a loss in the same period a year-ago.
StubHub Holdings, Inc. (STUB) Q1 2026 Earnings Call Transcript
Chief Executive Eric Baker said StubHub is seeing a healthy operating environment for both live events and its resale marketplace, and its growing scale is boosting profitability.
StubHub Holdings maintains a buy rating, with its competitive moat strengthening through deeper seller workflow integration via ReachPro. STUB now commands ~50% of the North American secondary ticketing share, with ReachPro driving ~30% of POS-driven dollar volume by FY2025. The strategic shift in Direct Issuance focuses on scalable, product-led adoption, not immediate revenue, enhancing long-term growth prospects.
StubHub 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.
StubHub Holdings was downgraded to Neutral from Outperform by analysts at Wedbush Securities following weaker-than-expected quarterly results and reduced visibility into growth from the company's direct ticket issuance business. StubHub reported second-quarter gross merchandise sales (GMS) of about $2.3 billion, down roughly 8% year over year, missing Wedbush's estimate of a 1.1% decline and consensus expectations for a 2.8% drop.
StubHub Holdings Inc (NYSE:STUB) stock is off by 15.4%, and earlier hit a record low of $8.06, after the ticketing resale platform posted a grim fourth-quarter report.