StubHub Faces Class Action Post-IPO as Stock Plummets 56%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 02 2025
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Source: Globenewswire
- Class Action Initiated: StubHub conducted its IPO on September 17, 2025, issuing approximately 34 million shares at $23.50 each, now facing a class action lawsuit alleging significant false and misleading information in its IPO documents.
- Deteriorating Cash Flow: The lawsuit claims that StubHub reported a negative free cash flow of $4.6 million for Q3 2025, a 143% year-over-year decline, indicating a significant adverse impact on cash flow due to changes in vendor payment timing.
- Stock Price Plummet: Following the financial report, StubHub's stock price fell nearly 21%, trading as low as $10.31 per share by the time the class action commenced, representing a nearly 56% drop from the IPO price, reflecting severe market concerns about its financial health.
- Investor Rights Compromised: The class action allows any investor who purchased StubHub stock during the IPO to seek lead plaintiff status, aiming to recover losses for affected investors, highlighting significant deficiencies in the company's transparency and compliance practices.
STUB
$13.77+Infinity%1D
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 24.18 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
9 Buy
4 Hold
0 Sell
Moderate Buy
Current: 14.000
Low
16.00
Averages
24.18
High
45.00
Current: 14.000
Low
16.00
Averages
24.18
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.
