8 Red Days In A Row: HubSpot Stock Is Down 20%
HubSpot (HUBS) stock has fallen for 8 consecutive trading days, losing 20.0% over that stretch. That erased about $2.7 billion from the company’s market value, which now stands at about $11.0 billion. The stock closed at $216.64 on Wednesday, November 4, 54.1% below its 52-week high of $471.99 and 27.2% above its low of $170.28.
The Streak Next To The S&P 500
Returns for HUBS and the S&P 500 over the streak and the periods around it, all ending Wednesday, November 4 and including dividends:
| Return Period | HUBS | S&P 500 |
|---|---|---|
| 1 Day | -4.2% | 1.6% |
| 8 Days (Current Streak) | -20.0% | 0.9% |
| 1 Month (21 Trading Days) | -0.2% | -1.6% |
| 3 Months (63 Trading Days) | 7.0% | 0.0% |
| Year To Date | -46.0% | 13.4% |
| 1 Year (252 Trading Days) | -56.2% | 13.5% |
How The Streak Compares With The Market
The market explains little of this: the S&P 500 gained 0.9% over the same 8 sessions, including dividends, against HubSpot’s -20.0%. Over the past three months the stock is up 7.0%, a window that includes the streak; over the other 55 sessions of that window it was up 33.8%.
Do The Fundamentals Justify The Selling?
On the fundamentals, revenue grew 21.1% over the last twelve months, against a median of 17.9% for S&P 500 Information Technology stocks; its operating margin is 3.9%, versus a median of 21.5%; and the stock trades at 74.6 times trailing earnings against a median of 29.6. The read is mixed: revenue growth above the median on one side, margins below the median and a multiple well above the median on the other.
If the drop has you weighing an entry, resist buying on price alone. Our Buy the Dip screen ranks the marked-down names where growth and cash generation still hold up.
Weakness In One Name Should Be Noise, Not News
For a diversified holder, a streak like this is a data point. For a concentrated one, it is a hole in the plan. The difference is never the stock; it is the portfolio built around it.
Building that portfolio is what the Trefis High Quality (HQ) Portfolio does: roughly 30 businesses with the cash generation and balance-sheet strength to absorb a bad month, selected and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Make the next streak, in either direction, someone else’s drama.