What Happened?

Shares of sales and marketing software maker HubSpot (NYSE:HUBS) jumped 5.9% in the afternoon session after the company reported fourth quarter 2024 results that exceeded analysts' billings and revenue estimates, with total revenue rising 21% year on year, supported by strong subscription growth. On the other hand, its EPS guidance for the next quarter missed expectations, and its full-year revenue outlook of 14% year-on-year growth suggests a slowdown compared to 2024's 21% increase. This signals potential softness in demand or a more cautious outlook for customer spending. Overall, this was a mixed yet decent quarter.

The shares closed the day at $818.69, up 4.3% from previous close.

Is now the time to buy HubSpot? Access our full analysis report here, it’s free.

What The Market Is Telling Us

HubSpot’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. 

The biggest move we wrote about over the last year was 7 months ago when the stock dropped 13.6% on the news that 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."

HubSpot is up 16% since the beginning of the year, and at $808.80 per share, has set a new 52-week high. Investors who bought $1,000 worth of HubSpot’s shares 5 years ago would now be looking at an investment worth $4,099.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.