StubHub reported a loss of $1.56 per share in Q4, compared to earnings per share of $0.13 during the same quarter a year ago, while Wall Street expected a loss of $0.02 per share.
- Analysts at JPMorgan downgraded StubHub to ‘neutral’ from ‘overweight’ while reducing the price target to $10 from $12.
- The firm cited StubHub’s guidance reset for 2026 as the reason for the downgrade, while highlighting that the company will need to build credibility with investors.
- Wedbush stated that it has “limited conviction and visibility” regarding StubHub’s direct issuance business.
StubHub Holdings Inc.’s (STUB) lackluster fourth-quarter (Q4) results drew a spate of downgrades from Wall Street, with analysts pointing to a series of concerns about the company’s future outlook and the regulatory environment.
StubHub shares tumbled more than 14% in Thursday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘extremely bullish’ territory at the time of writing.
Why Is Wall Street Worried?
Analysts at JPMorgan downgraded StubHub to ‘neutral’ from ‘overweight’ while reducing the price target to $10 from $12. The firm cited StubHub’s guidance reset for 2026 as the reason for the downgrade, while highlighting that the company will need to build credibility with investors.
JPMorgan stated that StubHub’s 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance is now 60% lower than what the company projected in October 2025. The firm said that while the new outlook “may finally be achievable,” it will have to work through the lock-up expiration beginning March 9, 2026, and also overcome ongoing regulatory concerns around the company.
Analysts at Wedbush also downgraded StubHub to ‘neutral’ from ‘outperform’ and lowered the price target by 80% to $10 from $18. The firm stated that it has “limited conviction and visibility” in StubHub’s direct issuance business, noting that the ticket resale broker’s management’s “lofty” expectations are not materializing.
Wedbush also stated that regulatory risks will remain an overhang on the stock, while adding that the company is vulnerable to AI-enabled disintermediation in the coming years, given that companies operating in the space face the risk from commoditization.
StubHub’s Q4 At A Glance
StubHub reported a loss of $1.56 per share in Q4, compared to earnings per share (EPS) of $0.13 during the same quarter a year ago. Wall Street expected the company to report a loss of $0.02 per share during the quarter, according to Fiscal.ai data.
The company’s revenue in Q4 was $449 million, down from $533 million in the year-ago period. Wall Street consensus projected StubHub to report revenue of $485 million during the period.
StubHub’s founder and CEO, Eric Baker, remained optimistic about the company’s prospects, stating that 2025 reinforced that the ticket resale broker’s mission is as relevant as ever. “Our full-year performance validates our long-term strategy and the substantial value we're creating for fans, partners, and shareholders alike,” he said.
How Did Stocktwits Users React To STUB?
One user on Stocktwits pointed to macroeconomic challenges in the U.S., adding that the amount of money people have to spend on “luxuries” is declining.
However, a bullish user said that StubHub is a “solid company with actually great earnings.”
STUB stock is down 25% year-to-date and 64% over the past 12 months.
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