HubSpot, Inc. (HUBS) Down 4.6% — Should I Stop the Bleeding?
Key Points
HubSpot, Inc. (HUBS) was under pressure in the latest session, retreating 4.63% to close at $313.98, losing $15.26 from the prior finish. The stock was sliding on relatively light participation, with roughly 456,800 shares changing hands versus a 90-day average closer to 857,500, underscoring a pullback that was unfolding on below-normal trading activity. Even with the softer volume, the price action points to a stock that is losing ground in the near term and struggling to find support at recent levels.
The decline leaves HubSpot trading well below its 52-week peak of $881.13 set on Feb. 13, 2025, highlighting a steep retracement from earlier highs and signaling that the shares remain firmly under pressure within their annual range. This distance from the top of the 52-week band stands out within the cloud and software group, where names like CrowdStrike (CRWD) or Snowflake (SNOW) have also seen periods of selling pressure but have generally not experienced such a deep slide from their respective highs. Taken together, the latest move reinforces a negative technical backdrop for HUBS, with price momentum skewed to the downside and recent trading action reflecting a market that continues to reassess the stock at progressively lower levels.
Why HubSpot, Inc. Price is Moving Lower
Despite a recent analyst price target increase from Citi, sentiment around HubSpot, Inc. remains under pressure, and the stock continues to trade near the lower end of its 52‑week range. The Citi target hike to $658 and reiterated Buy rating highlight confidence from parts of Wall Street, but the market’s response has been muted, reflecting broader concerns. Investors appear focused less on the higher target and more on the ongoing drawdown from the prior 52‑week high near $881, interpreting the move as a sign that expectations had become stretched for a still-unprofitable software name. The roughly 6.7% pullback in early January trading adds to this perception of fragility, suggesting that rallies are being sold into rather than extended.
Fundamentally, headline growth remains solid, but it is no longer enough on its own to support earlier valuation levels. Revenue rose 6.4% sequentially to $809.52 million and 20.87% year over year, yet HubSpot continues to post negative earnings per share at -$0.08 and a profit margin of -0.11%. In a market that has become more selective about loss-making cloud and software platforms, this combination of strong top-line growth with ongoing net losses is a notable headwind. At the same time, trading volume has run below its 90‑day average, signaling reduced buying conviction as the stock lingers near its lows. With other high-growth software peers like CrowdStrike and Snowflake also facing sentiment pressure, HubSpot is being swept up in a broader rotation away from richly valued, low-profitability technology names, keeping the price action biased to the downside.
What is the HubSpot, Inc. Rating - Should I Sell?
Weiss Ratings assigns HUBS an E rating. The stock was downgraded on 9/30/2025, and the current recommendation is Sell. An E rating signals a particularly unfavorable risk/reward profile, meaning downside risk currently outweighs the potential upside for investors, even in a growth-oriented technology name.
The most striking disconnect is between the Excellent Growth Index and the overall E (Sell) rating. HubSpot is still expanding quickly, with revenue rising 20.87%, but that growth has not translated into healthy profitability or attractive shareholder returns. Profit margin remains negative at -0.11%, and the forward P/E ratio of -4,372.38 indicates the market is paying a very steep price for earnings that have yet to materialize. The Weak Total Return Index confirms that, on a risk-adjusted basis, shareholders have not been adequately compensated for riding out that risk.
Operational quality is also a key concern. The Very Weak Efficiency Index points to poor returns on capital and management effectiveness, a serious issue when combined with aggressive growth spending. While the Excellent Solvency Index indicates a solid balance sheet, that strength alone has not been enough to offset execution risks, as captured by the Weak Volatility Index, which flags an unfavorable pattern of price swings versus reward.
Within Information Technology, HubSpot’s E rating stands out negatively even against already speculative peers such as CrowdStrike Holdings, Inc. (CRWD, D) and Snowflake Inc. (SNOW, D-). When a stock screens weaker than many high-risk, high-growth peers, it reinforces the need for caution and disciplined risk management.
About HubSpot, Inc.
HubSpot, Inc. is an information technology company operating in the software and services industry, with a narrow focus on a single, integrated cloud-based customer relationship management (CRM) platform. Headquartered in Cambridge, Massachusetts and incorporated in 2005, the company targets primarily mid-market business-to-business organizations in the Americas, Europe and the Asia Pacific. Rather than offering a broad portfolio across multiple enterprise software categories, HubSpot concentrates its efforts on marketing, sales, service, content and operations tools that are tightly bundled into its own ecosystem, which can limit flexibility for customers seeking more specialized or best-of-breed solutions.
The company’s CRM platform is organized into several “Hubs” that lock customers into a multi-module subscription structure. Marketing Hub provides marketing automation, email campaigns, social media management, SEO tools and analytics, while Sales Hub layers in email templates and tracking, live chat, meeting and call scheduling, lead scoring, sales automation, pipeline management, quoting, forecasting and reporting. Service Hub is positioned as customer service software, helping businesses manage, respond to and connect with customers, but it competes in a crowded field of established service management providers. Content Hub is designed to create and edit web content within HubSpot’s framework, increasing platform dependence. Operations Hub focuses on customer data synchronization, data cleanup, workflow automation and integrations, while Commerce Hub functions as a B2B commerce suite tied into the same environment. Beyond software, HubSpot sells professional services, training, customer success programs and support delivered by phone, email and chat, reinforcing a services layer that keeps customers embedded within the company’s platform.
Investor Outlook
With an E (Sell) Weiss Rating, HubSpot, Inc. (HUBS) sits in the highest-risk bucket of Information Technology names, so investors may want to monitor whether recent price action confirms continued weakness or hints at a sustained reversal. Watch for changes in sector sentiment toward high-multiple software names and any shifts in the underlying risk factors that drive the Sell rating before reassessing its risk/reward profile. See full rankings of all E-rated Information Technology stocks inside the Weiss Stock Screener.
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