Why HubSpot (HUBS) Shares Are Sliding Today

Anthony Lee /
2024/07/10 3:30 pm EDT

What Happened:

Shares of sales and marketing software maker HubSpot (NYSE:HUBS) fell 13.6% in the afternoon session after Bloomberg reported that Alphabet abandoned plans to acquire the company. According to the sources, both parties never reached a point of "detailed talks around due diligence."

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What is the market telling us:

HubSpot's shares are very volatile and over the last year have had 10 moves greater than 5%. But moves this big are very rare even for HubSpot and that is indicating to us that this news had a significant impact on the market's perception of the business. 

The biggest move we wrote about over the last year was about a month ago, when the company gained 9.5% on the news that CNBC's David Faber confirmed rumors that Alphabet is in talks to acquire the company. Faber added, "There have been many reports about HubSpot being in conversations with Google...My understanding is absolutely true, all stock deal for Alphabet to acquire HubSpot."

HubSpot is down 12.1% since the beginning of the year, and at $482.01 per share it is trading 29.3% below its 52-week high of $682.02 from April 2024. Investors who bought $1,000 worth of HubSpot's shares 5 years ago would now be looking at an investment worth $2,694.

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