StubHub Readies for IPO Despite Not Meeting Financial Goals
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 01 2025
0mins
Source: TipRanks
StubHub's Financial Performance and IPO Plans
- Current Revenue Status: StubHub reported a revenue of $828 million for the first half of the year, marking a 3% increase from the previous year but falling 6% short of the projected $885 million.
- Profit Shortfall: The company's profits were approximately 7% below expectations, indicating challenges in meeting financial forecasts.
Impact of New Legislation
- New U.S. Law Effects: A recent U.S. law requiring full ticket price disclosure, including all fees, is cited as a significant factor in StubHub's revenue shortfall.
- Market Growth Slowdown: The company estimates that this regulation has slowed its growth in the North American secondary ticketing market by 10%.
Competitive Landscape
- Rival Performance: StubHub claims to be performing better than competitors like Vivid Seats, whose stock has plummeted over 80% this year due to a 21% revenue decline in the first half.
- Live Nation's Challenges: Live Nation, which owns Ticketmaster, also reported a decrease in ticket resale sales attributed to weaker sports events and pricing adjustments.
IPO Strategy and Future Growth
- IPO Plans: Despite the financial setbacks, StubHub is moving forward with its IPO, albeit at a lower valuation than the previously anticipated $16 billion.
- Direct Ticket Sales Initiative: The company aims to expand by selling tickets directly, although this segment currently represents only about 1% of its gross sales.
Analyst Insights
- Stock Performance Outlook: Analysts suggest that Vivid Seats (SEAT) stock has more potential for growth compared to Live Nation (LYV), with a price target of $25 per share indicating a 41% upside, while LYV shows only a 6.4% potential increase.
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Analyst Views on LYV
Wall Street analysts forecast LYV stock price to rise
14 Analyst Rating
14 Buy
0 Hold
0 Sell
Strong Buy
Current: 154.870
Low
164.00
Averages
175.86
High
190.00
Current: 154.870
Low
164.00
Averages
175.86
High
190.00
About LYV
Live Nation Entertainment, Inc. is a live entertainment company. The Company is a producer of live music concerts. Its segments include Concerts, Ticketing and Sponsorship & Advertising. The Concerts segment principally involves the global promotion of live music events in its owned or operated venues and in rented third-party venues, the operation and management of music venues, the production of music festivals across the world, the creation of associated content and the provision of management and other services to artists. The Ticketing segment is an agency business that sells tickets for events on behalf of its clients. The Sponsorship & Advertising segment employs a sales force that creates and maintains relationships with sponsors through a combination of strategic, international, national, and local opportunities that allow businesses to reach customers through its concert, festival, venue and ticketing assets, including advertising on its Websites.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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