Cathie Wood is Dumping These 5 Stocks

In this article, we discuss the 5 stocks Cathie Wood is dumping. If you want to read our detailed analysis of these stocks, go directly to Cathie Wood is Dumping These 15 Stocks.

5. HubSpot, Inc. (NYSE: HUBS)

Number of Hedge Fund Holders: 54 

HubSpot, Inc. (NYSE: HUBS) is placed fifth on our list of 15 stocks that Cathie Wood is dumping. The company is headquartered in Cambridge and provides a cloud-based customer relationship management platform for businesses. 

On August 5, investment advisory Truist maintained a Buy rating on HubSpot, Inc. (NYSE: HUBS) stock and raised the price target to $700 from $600, highlighting that the earnings beat of the firm in the second quarter was “impressive”. 

Out of the hedge funds being tracked by Insider Monkey, California-based investment firm SCGE Management is a leading shareholder in HubSpot, Inc. (NYSE: HUBS) with 1.4 million shares worth more than $820 million. 

In its Q2 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and HubSpot, Inc. (NYSE: HUBS) was one of them. Here is what the fund said:

“HubSpot has its roots in marketing automation software for small and medium-sized businesses, but during our ownership period has steadily expanded its offering to become a broad front-office solution suite across marketing, sales, service, website content management and customer data analytics (and has simultaneously enriched these tools to attract larger customers). The pandemic has prompted companies across the globe to modernize their customer-facing software at a record pace as they increasingly rely on their digital capabilities. HubSpot’s ability to meet this need was on full display in its recent earnings results. New customer additions hit a record pace (+45% YoY), and the company demonstrated both high retention of existing customers and strong progress in driving higher adoption of additional software modules. Furthermore, the company’s sales and marketing spend is getting more efficient, which is driving a steady increase in margins. Given the positive profit cycle momentum, we added to our position at a valuation we consider attractive.”