HubSpot, Inc. (HUBS) Down 5.0% — Is This the Moment to Unload?
Key Points
HubSpot, Inc. (HUBS) is retreating sharply, with the stock closing at $381.04, down 5.05% on the session and losing $20.26 from the prior close of $401.30. The move leaves shares under pressure and sliding further away from their recent peak, extending a pattern of weakness that has seen the stock give up a sizable portion of earlier gains. Trading activity was notably subdued, with volume at 77,569 shares, well below the 90-day average of 842,626, suggesting this latest downdraft occurred in a relatively thin tape rather than on heavy participation.
From a longer-term perspective, HubSpot is losing ground against its own history. The stock now sits far beneath its 52‑week high of $881.13, reached on Feb. 13, 2025, putting it down more than 55% from that level. That deep slide underscores the degree of pressure the shares have been under over the past year, with the current quote hovering closer to the low end of the 52‑week range at $344.41 than to the prior peak. Within the broader high‑growth software and cloud cohort — including names like CrowdStrike Holdings (CRWD), Snowflake (SNOW), Cloudflare (NET), Datadog (DDOG), and Atlassian (TEAM) — HubSpot’s trajectory stands out as particularly weak in absolute terms, as the stock has surrendered a larger chunk of its prior advance and remains firmly in a retrenchment phase.
Why HubSpot, Inc. Price is Moving Lower
Weakness in HubSpot’s share price is being driven less by fresh headlines and more by mounting concerns over valuation and profitability against a cautious sentiment backdrop. The stock has been consolidating just above the $400 level, but this follows a steep slide of more than 50% from its all‑time high near $881 earlier in 2025. With a deeply negative P/E ratio in the thousands and a profit margin still in negative territory around -0.11%, investors are increasingly questioning how long the market can justify a premium multiple for a business that has yet to convert strong top-line expansion into durable earnings. Near-term bearish forecasts calling for a potential drop toward the low-$300s are adding to the pressure, especially with the broader risk-off tone in high-growth software names.
At the same time, recent trading reflects a tug-of-war between long-term optimism and near-term risk aversion. HubSpot continues to deliver robust revenue growth — up about 6.4% quarter over quarter and roughly 21% year over year, to more than $800 million in the latest quarter — but that operational momentum has not prevented the stock from posting a mid-teens decline over the past year. The absence of new catalysts or upgrades has left the share price more exposed to macro jitters and sector rotation out of richly valued cloud and software platforms such as CrowdStrike, Snowflake, Cloudflare, Datadog, and Atlassian. Until the company shows clearer progress on sustained profitability, the market appears inclined to discount even aggressive analyst targets, keeping HubSpot’s stock under pressure.
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 despite some strong operating trends. An E rating indicates that, after weighing all factors, downside risk meaningfully outweighs the upside potential for shareholders at this time.
Operationally, HubSpot is growing quickly, as seen in the Excellent Growth Index and revenue expansion of 20.87%. However, that growth has not translated into shareholder-friendly financial performance. Profitability remains elusive, with a profit margin of -0.11%, and the forward P/E ratio of -5,329.35 underlines how far current earnings are from justifying the valuation. The Very Weak Efficiency Index signals that management is generating poor returns on invested capital, a key reason the overall rating is so low despite strong top-line momentum.
The Weak Total Return Index shows that investors taking on this level of risk have not been adequately rewarded, while the Weak Volatility Index points to an unfavorable balance between upside and downside price swings. Even the Excellent Solvency Index, indicating a strong balance sheet, has not shielded shareholders from performance risk. In other words, solid growth and solvency are not enough to offset weak efficiency, poor returns, and elevated volatility.
Within information technology, HubSpot’s E rating places it at the bottom of an already speculative peer group that includes CrowdStrike Holdings, Inc. (CRWD, D+), Snowflake Inc. (SNOW, D-), and Atlassian Corporation (TEAM, E+). For investors, that clustering of low grades across similar names underscores the need for heightened caution in this corner of the market.
About HubSpot, Inc.
HubSpot, Inc. is an information technology company operating in the software and services industry, focused on providing a cloud-based customer platform for small and mid-sized organizations that lack the resources to build their own integrated systems. The company’s primary offering is the HubSpot Customer Platform, which combines marketing, sales, service, content management and operations tools into a single software-as-a-service (SaaS) environment. This bundled approach is designed to lock customers into its ecosystem but can limit flexibility for businesses that prefer best-of-breed point solutions. HubSpot’s applications are accessed through a subscription model, creating ongoing dependence on the company’s software, data structures and implementation standards.
HubSpot’s product portfolio is organized into “hubs,” including Marketing Hub, Sales Hub, Service Hub, CMS Hub, and Operations Hub, as well as a connected CRM database that sits at the core of the platform. These tools are aimed at helping customers attract website traffic, manage leads, automate outreach, support customer service interactions and analyze user behavior. However, the breadth of the platform can introduce complexity for smaller teams and may require ongoing consulting or technical support. HubSpot also promotes an extensive partner and app marketplace to extend its functionality, which can increase integration overhead and raise switching costs over time.
The company positions itself against other enterprise and mid-market software vendors in the customer relationship management and marketing automation segments. Its strategy leans heavily on inbound marketing methodology and proprietary training content to onboard and retain customers, reinforcing dependence on HubSpot’s specific workflows and terminology rather than open, vendor-neutral standards.
Investor Outlook
With HubSpot, Inc. (HUBS) carrying an E (Sell) Weiss Rating, investors may want to exercise caution and closely monitor whether recent downside momentum stabilizes or accelerates. Watch how the broader Information Technology group behaves, particularly if weakness in growth-oriented names deepens, and track whether any shift in fundamentals is strong enough to justify a future rating upgrade. See full rankings of all E-rated Information Technology stocks inside the Weiss Stock Screener.
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