Why a $58 Million Bet on StubHub Stock Still Makes Sense Despite a 40% Post-IPO Drop in Share Price

2 hours ago 4

Jonathan Ponciano, The Motley Fool

Wed, December 17, 2025 astatine 10:39 AM CST 5 min read

New York City-based Insight Holdings Group disclosed a caller acquisition of 3.4 cardinal StubHub Holdings shares successful the 3rd quarter, adding an estimated $57.9 cardinal successful value.
The presumption accounts for 3.6% of reported assets nether absorption (AUM).
This marks a caller holding for Insight, which did not study holding StubHub shares successful the erstwhile period.
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New York City-based Insight Holdings Group disclosed a caller presumption successful StubHub Holdings (NYSE:STUB), acquiring astir $57.9 cardinal of stock, according to a November 14 SEC filing.

Insight Holdings Group initiated a caller involvement successful StubHub Holdings (NYSE:STUB), reporting ownership of 3.4 cardinal shares valued astatine $57.9 cardinal arsenic of September 30, per its quarterly Form 13F filed with the U.S. Securities and Exchange Commission connected November 14. The caller presumption constituted 3.6% of the fund’s reported U.S. equity assets.

Top 5 holdings aft the filing:

NYSE:HNGE: $541.3 cardinal (33.4% of AUM)
NASDAQ:UDMY: $266.6 cardinal (16.5% of AUM)
NYSE:S: $148.4 cardinal (9.2% of AUM)
NASDAQ:MSFT: $112.6 cardinal (7% of AUM)
NASDAQ:NVDA: $87 cardinal (5.4% of AUM)

As of Wednesday, shares were priced astatine $13.95, down astir 40% from a September IPO terms of $23.50.

Metric

Value

Price (as of marketplace adjacent 2025-11-14)	$18.82
Market Capitalization	$4.91 billion
Revenue (TTM)	$1.80 billion
Net Income (TTM)	($54.83 million)

StubHub offers a planetary integer marketplace for secondary summons income crossed sports, concerts, theater, and unrecorded events, generating gross chiefly from transaction fees.
The institution operates a platform-based concern exemplary that connects buyers and sellers, facilitating unafraid and businesslike summons resale transactions.
It serves idiosyncratic consumers worldwide, with a superior absorption connected event-goers seeking entree to sold-out oregon high-demand unrecorded entertainment.

StubHub Holdings is simply a starring subordinate successful the secondary ticketing market, leveraging its exertion level to facilitate millions of summons transactions annually. The company’s scale, planetary reach, and absorption connected idiosyncratic acquisition presumption it arsenic a cardinal intermediary successful unrecorded lawsuit access. Its competitory vantage lies successful its robust marketplace infrastructure and established marque wrong the lawsuit ticketing ecosystem.

Buying astir an IPO often reflects condemnation successful a company’s durability alternatively than being a momentum play, particularly erstwhile volatility is often expected aboriginal successful a nationalist company’s life. And StubHub’s latest 4th helps explicate wherefore that patience whitethorn beryllium warranted. The institution generated $2.4 cardinal successful gross merchandise income successful the 3rd quarter, up 11% twelvemonth implicit year, with maturation accelerating to 24% erstwhile excluding the Taylor Swift circuit impact, according to its net release. Revenue roseate 8% to $468 million, portion adjusted EBITDA climbed 21% to $67 million, pointing to improving operating leverage arsenic standard increases.

The header GAAP nonaccomplishment looks alarming astatine $1.3 billion, but it was driven chiefly by a one-time $1.4 cardinal stock-based compensation complaint tied to the IPO, not a deterioration successful the underlying business. More importantly for semipermanent holders, StubHub utilized IPO proceeds to chopped astir $750 cardinal of debt, reducing nett leverage to 3.9 times trailing EBITDA.

Within a portfolio anchored by large, established maturation names, this presumption reads arsenic a measured stake connected marketplace resilience, equilibrium expanse repair, and dependable borderline enlargement alternatively than a short-term trade.