StubHub Faces Class Action After 56% Stock Drop Post-IPO
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 23 2025
0mins
Should l Buy STUB?
Source: Globenewswire
- Poor IPO Performance: StubHub conducted its IPO on September 17, 2025, selling approximately 34 million shares at $23.50 each, yet the stock plummeted 20.9% to close at $14.87 on November 14, 2025, indicating significant market concerns regarding its financial health.
- Significant Cash Flow Decline: The company's Q3 report revealed a free cash flow of negative $4.6 million, a staggering 143% decrease from the positive $10.6 million reported in the same quarter last year, highlighting a severe deterioration in operational efficiency.
- Sharp Drop in Operating Cash Flow: StubHub's net cash provided by operating activities was only $3.8 million, reflecting a 69.3% year-over-year decline, indicating adverse changes in vendor payment timing that negatively impacted overall financial performance.
- Class Action Risk: Due to material misstatements in the Registration Statement, StubHub is facing a class action lawsuit, with investors able to request lead plaintiff status by January 23, 2026, which could lead to further legal and financial repercussions.
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Analyst Views on STUB
Wall Street analysts forecast STUB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STUB is 23.80 USD with a low forecast of 16.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
8 Buy
5 Hold
0 Sell
Moderate Buy
Current: 11.410
Low
16.00
Averages
23.80
High
45.00
Current: 11.410
Low
16.00
Averages
23.80
High
45.00
About STUB
StubHub Holdings, Inc. operates a global secondary ticketing marketplace for live events. It connects fans around the world with sellers who use its marketplace to reach fans and price tickets efficiently. It operates its global ticketing marketplace through two brands: StubHub in North America and viagogo internationally. Its marketplace enables sellers of all types, including individual fans, professional sellers and content rights holders. Its technology is built to handle events regardless of their size, location, category or venue and includes end-to-end workflows and services that streamline the purchase and sale experience for buyers and sellers. It leverages its centralized technology and operations to reach buyers and sellers across the globe, supporting 33 languages and accepting payments in 48 currencies. Its marketplace is built to offer global distribution anywhere there is demand for live events. It offers data intelligence to optimize outcomes for buyers and sellers.
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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