1 Reason to Buy HubSpot Stock, and 1 Reason to Sell
Investors have been mainly focused on reasons to buy (NYSE: HUBS) stock in 2023. That's because the software specialist is taking big steps toward profitability and has built a much larger sales footprint in recent quarters. Those successes helped shares dramatically outperform the market so far this year, rising roughly 75% through early December compared to a 20% increase in the S 500.
There's always another side to every trade, though, and some investors see good reasons to avoid this stock following its recent rally. With that in mind, let's look at the biggest reason to like HubSpot stock today, along with one key reason to steer clear for now.
HubSpot is carving out an attractive niche for itself within the larger software-as-a-service ecosystem. By focusing on small and medium-size enterprises with its growing platform of business management offerings, the company is steadily winning market share. Sales last quarter were up a healthy 26% thanks to the combination of a 22% increase in the customer base and a 3% uptick in average subscription spending.
Source Fool.com
