Why HubSpot (HUBS) stock price rose today By Stock Story

What Happened: Shares of sales and marketing software maker HubSpot (NYSE:) jumped 9.4% in the afternoon session after Reuters reported that Google had expressed interest in acquiring the company. Alphabet (NASDAQ:) (Google’s parent company) is in talks with investment bankers about a potential offer, according to sources.

Following the news, Wall Street analysts weighed in on the development, with Stifel analysts expressing doubts about the deal. “Given that the DOJ already has two lawsuits pending against the company across its search business and ad tech practices, regulators believe this will be a major challenge.”

Stifel also commented on the potential upside of the deal, saying, “In our view, Google will be able to leverage its rich data assets aggregated across Gmail and its market-leading digital advertising products (Search, YouTube, Network, etc.) “He said. ) and our small but growing cloud business (the hub could drive more GCP usage)….We also believe this acquisition will provide us with a greater ability to leverage first-party data on one platform, like Google. We believe it can help strengthen Google’s position in advertising. “We’ll be removing third-party cookies from Chrome later this year.”

Is Now Time to Buy HubSpot? Read the original article on StockStory.

What the Market Tells Us: HubSpot’s stock price is very volatile, with moves greater than 5% ten times over the past year. In that context, today’s moves indicate that the market considers this news significant, but not something that will fundamentally change perceptions of the business.

The biggest move we wrote about last year was 11 months ago. Shares rose 5.5% on news that the company reported first-quarter earnings that exceeded analysts’ estimates for bills, revenue, gross margin, free cash flow and net income. (EPS) Share expectations. Customer growth also accelerated. Management also provided revenue and earnings per share (EPS) guidance for the coming quarter and full year, which are above consensus estimates. Overall, it was a strong quarter for the company both absolutely and relative to its SaaS peers, some of which was fueled by a difficult macro environment.

HubSpot is up 22.4% since the beginning of the year. An investor who bought $1,000 worth of HubSpot stock five years ago would now be considering an investment worth $4,080.