StubHub's public debut is turning into a cautionary tale about IPO timing. The ticket reseller's shares have plummeted 18% from their $23.50 IPO price, now trading at just $19 after three consecutive days of losses. While rivals like Klarna and Figma soared post-IPO, StubHub's stumble highlights growing regulatory pressure on the ticketing industry.
StubHub just learned the hard way that timing isn't everything in IPOs - it's the only thing. The ticket reseller's shares crashed another 7% Friday, capping off a brutal three-day debut that's left investors nursing an 18% loss from the company's $23.50 IPO price.
Trading under the ticker "STUB," the company's market value has already shrunk to roughly $7 billion from its $8.6 billion IPO valuation. That's a stark contrast to the victory laps being run by other recent market newcomers. Klarna has been on a tear since its debut, while design platform Figma and crypto payments company Circle both delivered solid early returns for investors.
Even Netskope - the cybersecurity firm that just went public Thursday - managed to pop 12% on its second trading day. But StubHub? It's looking more like a cautionary tale than a comeback story.
The timing couldn't be worse for a company that's been trying to go public for years. StubHub delayed its IPO twice, most recently in April when President Trump's tariff announcements sent markets into a tailspin. The company filed an updated prospectus in August, essentially hitting the reset button on its public offering plans.
But here's the thing - StubHub's business fundamentals aren't terrible. The 25-year-old company, which connects ticket buyers with resellers, posted revenue of $397.6 million in Q1, up 10% year-over-year. Sure, its net loss widened to $35.9 million from $29.7 million, but that's not unusual for a company investing in growth.
The real problem? Regulatory heat. CEO Eric Baker told CNBC Wednesday that new federal rules requiring transparent, all-in ticket pricing will cause a "one-time" financial hit. Translation: the era of sneaky fees is ending, and that's going to hurt the bottom line.
