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If You Invested $1000 in HubSpot a Decade Ago, This is How Much It'd Be Worth Now

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in HubSpot (HUBS - Free Report) ten years ago? It may not have been easy to hold on to HUBS for all that time, but if you did, how much would your investment be worth today?

HubSpot's Business In-Depth

With that in mind, let's take a look at HubSpot's main business drivers.

Headquartered in Cambridge, MA, HubSpot Inc. provides inbound marketing and sales application over the cloud. The software-as-a-service (SaaS) vendor helps businesses attract more customers through search engine optimization (SEO), social media, blogging, website content management, marketing automation, email, Customer Relationship Management (CRM), analytics and reporting.

HubSpot completed its Initial Public Offering (IPO) on Oct 15, 2014. In third-quarter 2024, the company generated revenues of $669.7 million (up 20.1% year over year), the majority of which came from subscriptions – 97.8% of total revenues.

HubSpot primarily caters to the small and medium businesses (SMB) market, where the churn rate is relatively higher as compared with the enterprise markets.

The company’s core products are Marketing Hub, Service Hub and Sales Hub, together referred to as HubSpot growth platform.

HubSpot Marketing’s important features are Marketing Automation and Email, Content Optimization System (COS), Social Media, SEO, CRM Sync and Reporting and Analytics. HubSpot Marketing is available for free as well as at different price points.

Marketing Hub aimed at enterprise, professional and starter marketers start at $3,600, $890 respectively and starter edition start $20 per month/seat..

Sales Hub features are Email Engagement Notifications, Sequences, Meetings, Calling, New Lead and Website Visit Alerts, Email Templates and CRM Tracking and Contact Insights.

Sales Hub aimed at enterprise, professional marketers start at $150, $100 and $20, respectively per month/seat.

Service Hub features are automation and routing, live chat and conversations, conversational bots, team emails, help desk and tickets, reporting tools and feedback, among others.

Service Hub aimed at enterprise, professional and starter marketers start at $150, $100 and $20, respectively per month/seat.

HubSpot CRM is a free offering that features Contact Management, Salesforce Automation and Pipeline Reporting, among others.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in HubSpot ten years ago, you're likely feeling pretty good about your investment today.

A $1000 investment made in November 2014 would be worth $19,806.27, or a 1,880.63% gain, as of November 13, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 193.58% and gold's return of 114.96% over the same time frame.

Analysts are anticipating more upside for HUBS.

HubSpot is witnessing steady multi-hub adoption from enterprise customers in the premium market. It reported strong third-quarter 2024 results, with both the top and bottom lines surpassing the Zacks Consensus Estimate. The results were primarily driven by strong user engagement across all segments. Integration of HubSpot AI, which includes cutting-edge features such as AI assistance, AI agents, AI insights, and ChatSpot, is driving more value to customers. The growing adoption of inbound applications is a tailwind. However, its lower price starter pack to attract new customers will likely impact the average revenue per customer growth. Strengthening of the U.S. dollar can affect its revenues. Rising operating expenses are straining margins. Cautious spending decisions stemming from an unfavorable macro environment are concerning.

Shares have gained 27.93% over the past four weeks and there have been 12 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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