Is Artificial Intelligence the Saving Grace for HubSpot's Lingering Stock Woes?

HubSpot, a pioneering marketing software provider, is set to unveil its third-quarter 2025 earnings. With the anticipation mounting, Wall Street remains keenly observant. On one front, the company shows robust indicators from consistent revenue growth. On another, questions around AI’s impact loom large, sparking debate among financial analysts.

A Look Inside Wall Street’s Crystal Ball

Investors are eagerly waiting to dissect HubSpot’s upcoming earnings, as expectations remain high. The Massachusetts-based company’s earnings per share are projected to climb to \(2.59 from \)2.18 in the same period last year. Meanwhile, revenue is anticipated to reach about \(787 million, marking a significant upswing from the previous \)669.72 million. While such projections seem promising and reflect a bullish Wall Street sentiment, the real focus rests on the company’s adaptability to AI advancements.

AI: A Double-Edged Sword?

The AI revolution is at the forefront of these discussions. On one hand, Wells Fargo analysts see HubSpot as poised for gains facilitated by AI’s inclusion in their technical suite. In particular, innovations in agentic coding, which allow AI to evolve based on plain-text inputs, offer promising ventures, enhancing sizable market opportunities. Yet, differing opinions stir the market waters.

To exemplify, BofA’s Bradley Sills casts some clouds over this sunny outlook. His cautious stance comes from concerns over agentic AI’s potential disruption, pointing to HubSpot’s limited prowess in search engine optimization as a hitch. Although skeptical, Sills remains optimistic about the implications of HubSpot’s new pricing model, aimed at effectively monetizing Breeze, its AI assistant. Consequently, multiple compressions across similar app market players reflect a mature yet cautious investment landscape.

Should You Bet on HUBS?

While HubSpot’s stock performance has slumped by 29% since the year’s start, analysts maintain a positive long-term outlook. Among the broader consensus, the stock holds a ‘Strong Buy’ based on overwhelming support from leading analysts. With an average target price suggesting more than a 39% upside, the sentiment suggests optimistic faith in the company’s forthcoming AI-driven strategies. Investors are urged to reflect on this potential before deciding their course.

“As stated in TipRanks, HubSpot’s journey through AI adoption marks a pivotal period, showcasing an intersection of technology and business adaptability.”

The stock market’s horizon, with AI as a passenger, hints at opportunities layered with both risk and promise. HubSpot stands on a precipice: AI could very well be the nudge it needs to soar.