StubHub Holdings Inc (NYSE:STUB) stock is off by 15.4%, and earlier hit a record low of $8.06, after the ticketing resale platform posted a grim fourth-quarter report. Alongside a quarterly loss of $1.56 per share, the company posted a year-over-year drop in revenue to $449.2 million from $533.4 million. Fierce competition from resale sites and a shaky ticket marketplace were the culprits for the lackluster report.
STUB began trading publicly in Sept. 17 with an initial public offering (IPO) price of $23.50. The equity has suffered numerous bear gaps since and now carries a 35.7% year-to-date deficit.
J.P. Morgan Securities promptly issued a downgrade to "neutral" from "overweight", while BMO and BofA Global Research trimmed their price targets to $15 and $11, respectively. More bear notes could be on the way, considering the consensus 12-month price target of $15.52 is a 73% premium to its current perch.
The options pits are hot this morning, with 6,922 calls and 6,817 puts already across the tape within the first hour of trading. This represents eight times the average daily pace, with the March 10.50 call seeing buy-to-open activity.
