HubSpot Uses the SaaS Slump to Retire Shares at Scale – Buyback Wednesdays

After months of “SaaSpocalypse” fears, sentiment toward software began improving in July as investors grew more comfortable with the idea that generative AI was just as likely to strengthen incumbent platforms as to destroy them. Many software stocks, including Salesforce (CRM), Freshworks (FRSH) and Veeva Systems (VEEV) rallied sharply during the last two months.

HubSpot (HUBS) has not participated in that rebound in a meaningful way. The stock is up only about 16% over the past three months and more importantly, at around $240, still trades more than 50% below its 52-week high of $525.51.

Source: InsideArbitrage

That lag has created a notable disconnect. The market remains skeptical, but management has been buying the weakness. HubSpot accelerated repurchases during the selloff and has now authorized another $1 billion buyback, equal to roughly 8% of its market cap at announcement. 

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