StubHub Holdings, Inc. (STUB): A Bull Case Theory 

We came across a bullish thesis on StubHub Holdings, Inc. on stocks subreddit by Latter_Remove1314. In this article, we will summarize the bulls’ thesis on STUB. StubHub Holdings, Inc.’s share was trading at $14.66 as of January 29th. STUB’s forward P/E was 10.94 according to Yahoo Finance.

StubHub Holdings, Inc. operates ticketing marketplace for live event tickets worldwide. STUB presents a compelling case as a misunderstood IPO, trading below its $23.50 debut despite broad Buy and Overweight ratings from major banks, including Goldman Sachs’ $46 target. The company commands roughly 50% of the U.S. secondary ticketing market, giving it a dominant position supported by strong network effects, deep liquidity, and brand trust. This leadership provides a powerful springboard as StubHub expands into the much larger primary ticketing market, where direct issuance contracts with venues and event organizers represent a meaningful strategic shift.

Moving beyond resale into primary distribution strengthens the platform’s economics, deepens customer relationships, and opens a path to capturing a greater share of the live events ecosystem. Based on projected 2026 earnings, a 20x multiple implies a valuation near $50 per share, which appears reasonable for a category leader with consistent growth, expanding end markets, and durable competitive advantages. Even under more conservative assumptions, a mid-to-high $30 valuation seems defensible when compared with other marketplace and transaction-based businesses.

Despite these fundamentals, the stock has been largely overlooked since its IPO, creating an attractive mismatch between improving business momentum and muted investor attention. While execution risks remain—particularly around scaling primary ticketing, integrating with major venues, competing with Ticketmaster and SeatGeek, and navigating evolving regulatory rules—the current share price already reflects significant skepticism. StubHub’s dominant market position, growing presence in primary ticketing, supportive analyst coverage, and discounted valuation together create a setup where patient investors may benefit from a substantial rerating if execution continues to progress.

Previously we covered a bearish thesis on eBay Inc. (EBAY) by Kostadin Ristovski, ACCA in November 2024, which highlighted stagnant GMV, limited growth in developed markets, reliance on riskier international revenue, and a high valuation relative to growth. The company’s stock price has appreciated approximately by 53.51% since our coverage. The thesis still stands as eBay’s core resale market remains mature. Latter_Remove1314 shares a contrarian but emphasizes StubHub’s dominant secondary market position, expansion into primary ticketing, and undervaluation despite strong analyst coverage.

StubHub Holdings, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held STUB at the end of the third quarter which was 0 in the previous quarter. While we acknowledge the risk and potential of STUB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STUB and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.