Bank of America Downgrades StubHub After Record World Cup Quarter
StubHub reported record performance for Q2 2026, driven by strong demand from the FIFA World Cup. Gross merchandise sales reached $3.1 billion, up 34% year-over-year, while revenue climbed to $573.1 million and adjusted EBITDA surged 94% to $105.7 million. The company raised its full-year GMS guidance but left EBITDA expectations unchanged. Despite the strong results, Bank of America analyst Justin Post downgraded StubHub from Neutral to Underperform with a reduced price target of $7.50 per share. He warned that the World Cup may have inflated demand and distorted market dynamics for future quarters. BofA expects slower growth in 2026’s second half and into 2027, reducing its GMS forecast by about 5%. The analyst also changed valuation methods to a total EBITDA approach with a lower multiple due to StubHub's expected slower growth compared to the broader gig economy sector. The firm now seesStubHub trading at around seven times projected 2027 EBITDA, significantly below its peers.
Tickers: $STUB
Topics: analyst downgrade GMS growth StubHub World Cup demand