Why Did StubHub’s Stock Plunge 26% Today?

• StubHub declined to provide a fourth-quarter outlook.
• The company cited shifts in the timing of ticket sales.
• Q3 revenue stood at $468 million, marking an 8% year-on-year increase.

StubHub shares tumbled over 26% on Friday after the ticket reseller declined to provide guidance for the fourth quarter, due to shifts in the timing of ticket sales. 

In its third-quarter earnings call, Eric Baker, Founder, Chairman, and Chief Executive Officer of StubHub, said the company is observing a shift in the timing of concert onsales. 

Long Term View

Baker said that the company intends to share updated 2026 guidance during its next earnings call and aims to navigate current pricing challenges by May 2026.

“Several large tours that would typically go on sale in the fourth quarter occurred earlier in late September.” 

-Eric Baker, Founder, Chairman, and CEO, StubHub. 

“It remains to be seen how this concert on-sale timing dynamic plays out in November and December,” Baker added.

However, on Stocktwits, retail sentiment around StubHub’s stock jumped to ‘extremely bullish’ from ‘neutral’ territory the previous day. Message volume shifted to ‘extremely high’ from ‘low’ levels in 24 hours. 

Third-Quarter Performance 

Quarterly revenue reached $468 million, marking an 8% year-on-year increase. The loss per share stood at $4.27. The company noted that its gross merchandise sales climbed to $2.4 billion, reflecting an 11% increase YoY. 

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to $67 million, up 21% YoY, resulting in a 14% margin. StubHub posted a net loss of $1.3 billion for the quarter. The company stated that the figure resulted from a one-time charge associated with stock-based awards that had accumulated over multiple years and were recognized at the time of its initial public offering.

STUB stock has lost over 32% of its value since its September listing. 

Also See: Nvidia’s AI Roadmap Draws Analyst Confidence, Prompting Multiple Target Price Hikes

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