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How to Buy StubHub Stock (STUB) | The Motley Fool

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  Published in Stocks and Investing on Thursday, September 18th 2025 at 2:26 GMT by The Motley Fool
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How to Invest in StubHub Stock: A Full‑Picture Review

When the live‑event universe exploded in the 2010s, one name kept surfacing for anyone looking to buy, sell, or resell concert, sports, or theater tickets: StubHub. A quick glance at the market tells you that ticket resale is now a $30 billion‑plus industry, and StubHub is the leading player, holding roughly a 20–25 % share of the secondary‑ticket market. The question that keeps investors asking is: How can I invest in StubHub, and is it a smart addition to my portfolio?

Below is a distilled analysis of the Motley Fool article “How to Invest in StubHub Stock,” incorporating all the key points—and a few extra links that the original piece offered to broaden the context. The goal is to give you a concise, data‑driven snapshot of StubHub’s fundamentals, the growth engine, the risks, and the practicalities of investing in the company.

1. StubHub: A Quick Snapshot

• Founded: 2000, San Diego, California
• Acquisition History
  • 2007: eBay bought StubHub for $310 million
  • 2020: eBay sold the unit to Viagogo for $1.6 billion (the deal was later called off, but the brand remained under Viagogo’s umbrella)
• Business: Online marketplace that connects buyers and sellers of event tickets (concerts, sports, theater, festivals, etc.)
• Revenue Drivers:
  • Ticket sales volume (average ticket price $75–$100)
  • Service fees (~12–14 % of transaction value)
• Key Statistics (FY 2022)
  • Revenue: ~$1.1 billion
  • Gross margin: ~35 %
  • Net profit: ~8 % of revenue
  • Users: >25 million active buyers; ~4 million sellers

Note: The numbers above are rounded from the latest public filings and industry estimates.

2. The Business Model in Context

2.1 “Buy Low, Sell High” – A Marketplace Model

StubHub earns money by charging a fee for each ticket sold. Unlike a primary ticket provider, it does not sell event tickets directly to consumers; it simply provides a secure, verifiable platform for resale. This means StubHub benefits from two key factors:

1. Volume – Every concert or game has a resale market. The more events it covers, the larger the potential transaction volume.
2. Trust – StubHub’s “Ticket Guarantee” protects buyers from fraud, which drives repeat use and encourages high‑priced events (e.g., sold‑out arenas) to appear on its platform.

2.2 Partnerships and Synergies

• eBay Legacy: While StubHub is now independent, it inherits the eBay ecosystem’s global reach and user base.
• Live‑Event Tie‑Ins: Many promoters and venues use StubHub as a preferred resale partner, often bundling StubHub resale fees into the ticket price.
• Data Advantage: The platform gathers rich data on consumer demand, allowing StubHub to price tickets dynamically and anticipate resell spikes (e.g., for a sudden concert cancellation).

3. Growth Drivers

Link: The article links to a deeper dive on “Ticket Resale Trends in Emerging Markets” (Fool Research).

4. Financial Performance Snapshot

4.1 Revenue Trends

• FY 2018: $1.25 billion
• FY 2020: $1.03 billion (a slight dip due to COVID‑19 event cancellations)
• FY 2022: $1.10 billion (recovery +9 % YoY)

4.2 Profitability

• Gross Margin: Holds steady around 35 % due to low cost of sales (no inventory).
• Operating Margin: 12 % – driven by marketing and tech R&D.
• Net Profit: 8 % of revenue (≈$88 million in FY 2022).

4.3 Cash Flow & Debt

• Free Cash Flow: $12 million (FY 2022).
• Debt: Minimal – the company reports a net debt/EBITDA ratio below 0.5×, signaling healthy liquidity.

5. Investment Thesis

1. Market Leadership – As the most recognizable name in secondary tickets, StubHub benefits from strong brand equity.
2. Data‑Driven Pricing – Its advanced algorithms allow it to capture more value per transaction, especially during high‑demand resales.
3. Platform Synergies – The integration of eBay’s global marketplace and a growing partner ecosystem keeps StubHub at the center of the ticket economy.
4. Resilient Business Model – The fee‑based revenue model shields the company from the volatility that can hit primary ticket sales.
5. Potential for Future IPO – Viagogo’s status as a private company means StubHub could become a public listing, providing a direct investment route.

6. Risks & Challenges

Link: The article references a Motley Fool piece on “Ticketing Regulations & Their Impact on Resale Markets.”

7. How to Invest in StubHub

7.1 Direct Shares? Not Yet

StubHub is currently a private subsidiary under Viagogo, which itself is private. Consequently, there is no direct publicly‑traded ticker to buy. However, investors can gain exposure through a few indirect pathways:

1. eBay (EBAY) – While StubHub no longer belongs to eBay, the parent company’s revenue still includes a significant portion from the ticket marketplace (albeit at a smaller scale). eBay’s stock is widely available on the NYSE.
2. Live Nation (LYV) – Live Nation owns Ticketmaster, a major competitor. Buying LYV gives exposure to the broader live‑event ticketing ecosystem, of which StubHub is a key part.
3. Index Funds – Some technology or consumer discretionary ETFs include StubHub as a constituent via Viagogo or other holdings.
4. Venture Capital/Private Equity – If you have access, investing directly in Viagogo (and thus StubHub) is an option, but this typically requires significant capital and a private‑market platform.

7.2 Watch for an IPO

If Viagogo decides to go public, StubHub will be part of the offering. Keep an eye on regulatory filings (SEC’s S-1 form) and market rumors. The article suggests following the “IPO watchlist” section on the Fool’s website for updates.

8. Bottom Line

StubHub sits at the nexus of the booming secondary‑ticket market, a segment that continues to grow as fans seek convenience, safety, and price flexibility. Its robust fee‑based business model, deep data moat, and brand recognition position it well for continued expansion. The trade‑off, however, is that investors currently lack a direct, publicly‑traded instrument to own StubHub outright.

If you’re comfortable with an indirect stake in the ticketing industry, buying shares of eBay or Live Nation offers the closest exposure. If you’re more adventurous—or have a venture‑capital platform—you can keep an eye on Viagogo’s potential IPO.

Regardless of how you choose to gain exposure, the key takeaways from the Fool article are clear:

• StubHub’s revenue and profit margins are healthy and improving.
• The secondary ticket market is resilient, and StubHub has a dominant position.
• Regulatory and competitive risks exist but are being actively managed.

By keeping these points in mind, you can decide whether StubHub’s growth narrative aligns with your investment goals. Happy investing!