StubHub Faces Securities Class Action Post-IPO, Market Cap Drops Over $1 Billion

Written by Emily J. Thompson, Senior Investment Analyst

STUB.N+5.14%

Source: Globenewswire

Updated: Nov 26 2025

0mins

Source: Globenewswire

IPO Material Controversy: StubHub issued approximately 34 million shares at $23.50 during its IPO on September 17, 2025, but now faces a class action lawsuit from Hagens Berman, alleging misleading information in its IPO materials that failed to disclose adverse impacts on the company's operations and financial metrics.
Financial Health Concerns: The lawsuit highlights that the 'free cash flow' metric emphasized in the IPO documents did not reflect reality, as the third-quarter report revealed a negative free cash flow of $4.6 million, marking a staggering 143% decline year-over-year, raising serious concerns about the company's financial health.
Severe Market Reaction: Following the disappointing Q3 earnings release on November 13, 2025, StubHub's stock plummeted approximately 20% in the subsequent trading session, closing at $14.87, which is over 36% below the IPO price, indicating strong market distrust in its future growth prospects.
Regulatory Investigation Initiated: Hagens Berman is investigating whether StubHub misled investors in its IPO materials regarding known market trends and the scope of regulatory scrutiny, resulting in a loss of over $1 billion in market capitalization, suggesting the company may face greater legal and financial risks.

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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 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: 13.810

Low

16.00

Averages

24.18

High

45.00

Current: 13.810

Low

16.00

Averages

24.18

High

45.00

BMO Capital

Outperform

downgrade

$30 -> $22

2025-11-14

Reason

BMO Capital

Price Target

$30 -> $22

2025-11-14

downgrade

Outperform

Reason

BMO Capital lowered the firm's price target on StubHub to $22 from $30 but keeps an Outperform rating on the shares. The company's Q3 results topped estimates but the management anticipates softer Q4 revenue due to shifts in catalog sales and tougher comps, the analyst tells investors in a research note. BMO adds that it sees 2026 as a breakout year for StubHub given the World Cup, scaling its DI offering, advertising momentum, and a strong concert slate.

Oppenheimer

Jason Helfstein

Outperform

NULL

downgrade

$23 -> $20

2025-11-14

Reason

Oppenheimer

Jason Helfstein

Price Target

$23 -> $20

2025-11-14

downgrade

Outperform

NULL

Reason

Oppenheimer analyst Jason Helfstein lowered the firm's price target on StubHub to $20 from $23 and keeps an Outperform rating on the shares. Despite Q3 beat, the firm notes the company is not guiding Q4 outlook, which is being impacted by timing of concert sales, along with headwinds from all-in pricing and tough comparable sales from Taylor Swift/World Series. While Oppenheimer expects robust FY26 guidance on the Q4 call, there is no visible positive catalyst before then.

Evercore ISI

Mark Mahaney

Outperform

downgrade

$29 -> $27

2025-11-14

Reason

Evercore ISI

Mark Mahaney

Price Target

$29 -> $27

2025-11-14

downgrade

Outperform

Reason

Evercore ISI analyst Mark Mahaney lowered the firm's price target on StubHub to $27 from $29 and keeps an Outperform rating on the shares. StubHub's Q3 results were "a mixed bag" and the lack of Q4 guidance was "unexpected and contributed to a significant market reaction," the analyst tells investors. While calling management's decision to withhold Q4 guidance "disappointing," especially given the challenging comps ahead, the firm argues that StubHub's dominant position in the secondary ticketing market, combined with high-margin economics, remains attractive.

Wedbush

Outperform

NULL

downgrade

$25 -> $22

2025-11-14

Reason

Wedbush

Price Target

$25 -> $22

2025-11-14

downgrade

Outperform

NULL

Reason

Wedbush lowered the firm's price target on StubHub to $22 from $25 and keeps an Outperform rating on the shares. The firm notes StubHub delivered healthy results in its first quarter as a public company. That said, Wedbush is surprised by management's decision to not offer any guidance.

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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

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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.