Stock Downturn

StubHub’s stock plummeted 24% after it withheld current quarter financial guidance, citing a “long-term” focus, unsettling investors despite reporting solid Q3 revenue and GMS growth. Revenue rose 8% to $468.1 million and GMS increased 11% to $2.43 billion, exceeding expectations. A net loss of $1.33 billion was attributed to IPO-related stock compensation. Concerns persist around near-term visibility, competition and achieving sustainable profitability. Wedbush maintains an outperform rating despite expressing surprise at the lack of guidance.