HubSpot, Inc. (HUBS) Down 4.8% — Time to Ring the Register?
Key Points
HubSpot, Inc. (HUBS) was under pressure in the latest session, sliding 4.80% to finish at $379.09. The stock lost $19.13 from the prior close of $398.22, extending a pattern of retreat that has left shares losing ground over recent weeks. Trading activity was notably subdued, with volume at 147,546 shares, well below the 90-day average of 846,457, suggesting the latest drop came in a relatively thin tape rather than heavy, conviction-style selling. Still, the size of the percentage decline highlights that the stock remains vulnerable to downside moves even on lighter participation.
From a longer-term perspective, the price action underscores how far HUBS has fallen from earlier strength. The stock now trades sharply below its 52-week high of $881.13 set on Feb. 13, 2025, leaving it more than $500 per share beneath that peak and firmly in retreat from those elevated levels. This slide places HUBS among several high-growth software names that have also been losing ground, with peers like CrowdStrike Holdings (CRWD), Snowflake (SNOW), Cloudflare (NET), Datadog (DDOG), and Atlassian (TEAM) showing their own periods of price volatility and pullbacks. Overall, the recent moves keep HUBS on the defensive, with the stock facing ongoing headwinds as it struggles to regain momentum after a steep comedown from its 52-week high.
Why HubSpot, Inc. Price is Moving Lower
Recent weakness in HubSpot, Inc. is largely being driven by broader sector headwinds rather than company‑specific catalysts. Shares have been stuck in a narrow $380–$400 band, with modest volatility and relatively light trading activity compared with the 90‑day average. That pattern points to ongoing multiple compression across higher‑growth software and SaaS names, as investors continue to rotate away from richly valued growth tech. The sharp 4.75% drop on Jan. 2, followed by subdued, range‑bound sessions, suggests sellers are using any strength to reduce exposure, keeping the stock under pressure despite the absence of fresh corporate announcements or rating changes.
Fundamentally, HubSpot’s top line is still expanding, with quarterly revenue rising 6.4% sequentially to $809.52 million and annual growth above 20%. However, the stock’s recent drift lower indicates that this growth is no longer enough to fully offset investor concern about profitability and valuation risk. The company remains slightly loss‑making on a net basis, with a negative profit margin, which makes the shares more vulnerable when the market re‑prices high‑multiple software. In early January, sentiment toward growth‑tech and software has been cautious across the board, and peers such as CrowdStrike, Snowflake, and Cloudflare have faced similar pressure. In that context, HubSpot’s slide from late‑December levels near $400+ appears driven by investors demanding a larger discount for unprofitable or minimally profitable SaaS names, even those still delivering solid revenue expansion. Caution is warranted as long as sector‑wide repricing and earnings quality concerns remain in focus.
What is the HubSpot, Inc. Rating - Should I Sell?
Weiss Ratings assigns HUBS an E rating. Current recommendation is Sell. The stock was downgraded on 9/30/2025, reinforcing a clearly negative risk/reward profile for shareholders. An E rating means downside risk meaningfully outweighs upside potential, even within the often-volatile Information Technology space.
The most striking conflict in the profile is between the Excellent Growth Index and the overall E (Sell) rating. HubSpot continues to post strong top-line expansion, with revenue growth of 20.87%. However, that growth has not translated into shareholder-friendly economics. Profitability remains deeply challenged, with a profit margin of -0.11% and a highly distorted forward P/E ratio of -5,288.45, signaling that the company is losing money and that valuation rests heavily on optimistic future assumptions.
Supporting this caution, the Very Weak Efficiency Index shows that management is generating poor returns on invested capital relative to the risk investors are taking. Meanwhile, the Weak Total Return Index and Weak Volatility Index indicate that shareholders have not been adequately compensated for the stock’s price swings. Even the Excellent Solvency Index, which points to a solid balance sheet, is not enough to offset the combination of weak efficiency, persistent losses and fragile total-return history.
Within its peer group, HubSpot’s E rating places it at the bottom end of an already speculative cohort. CrowdStrike Holdings, Inc. (CRWD, D) and Datadog, Inc. (DDOG, D+) are also rated Sell, but sit above HUBS on the risk/reward spectrum, while Atlassian Corporation (TEAM, E+) shares similarly severe concerns. In this context, HUBS stands out as particularly vulnerable if market sentiment toward high-growth, unprofitable software names continues to deteriorate.
About HubSpot, Inc.
HubSpot, Inc. is a software and services provider in the Information Technology sector focused on cloud-based customer relationship management (CRM) and marketing automation. The company delivers an integrated platform designed primarily for small and mid-sized businesses, aiming to centralize marketing, sales, customer service, and content management activities. Its portfolio includes Marketing Hub for campaign management and lead generation, Sales Hub for pipeline tracking and deal management, Service Hub for support ticketing and customer feedback, and CMS Hub for website creation and content optimization. All of these are built on a common CRM database intended to give users a unified view of prospects and customers, but also create a dependence on HubSpot’s ecosystem and subscription model.
HubSpot typically operates on a tiered, subscription-based Software-as-a-Service (SaaS) model, which can lead to rising costs as customers expand usage or add features over time. The company competes in a crowded and mature CRM and marketing technology landscape against larger, well-capitalized vendors and specialized niche providers. Although HubSpot emphasizes ease of use, integration capabilities, and an extensive library of educational content to attract and retain customers, this strategy also encourages businesses to adopt HubSpot-specific workflows that can be difficult and costly to unwind. In a market where switching costs, platform lock-in, and ongoing subscription commitments matter, prospective users face a trade-off between the convenience of an all-in-one solution and the loss of flexibility that comes with relying heavily on a single vendor’s software and services stack.
Investor Outlook
With HubSpot, Inc. (HUBS) carrying an E (Sell) Weiss Rating, investors may want to exercise caution and closely monitor whether key risk factors—particularly execution, profitability and balance-sheet resilience—show meaningful improvement. Watch how the stock trades around recent support and resistance zones, and track sentiment toward Information Technology peers to gauge whether any rebound is company-specific or simply sector-driven. See full rankings of all E-rated Information Technology stocks inside the Weiss Stock Screener.
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