Why StubHub Plunged in November

Shares of StubHub (NYSE: STUB) sank 38.7% in November, according to data from S&P Global Market Intelligence.StubHub is a newly public stock, having had its initial public offering on September 17 at $23.50 per share. However, the bloom came off the rose for the stock in November, after first-quarter earnings seemed to disappoint the market's high expectations. Additionally, the United Kingdom's regulatory authorities passed measures that could threaten StubHub's U.K. business.In the third quarter, StubHub grew revenue 8% on gross merchandise volume (GMV) growth of 11%. However, GMV growth would have been 24% when adjusting for last year's Taylor Swift Eras tour. While the company recorded a ($1.3 billion) net loss on a GAAP basis, that was due to the one-time recognition of past employee equity awards. Adjusting for that, StubHub would have been profitable. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 21% to $67 million.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool