StubHub IPO Priced at $8.6B Amid Growth Slowdown, Profitability Woes

StubHub has set its initial public offering (IPO) valuation at $8.6 billion, according to CNBC. The company, which claims to operate the "largest global secondary ticketing marketplace for live events," facilitated the sale of over 40 million tickets in 2024 across more than 200 countries. StubHub's prospectus highlights that its business model "has achieved scale with high growth and generated significant revenue, profit and cash flow." However, recent financial performance suggests a more challenging market. For the six months ending June 2025, StubHub experienced a slowdown in revenue growth to 3%, reaching $828 million. This marks a substantial deceleration from the 30% growth observed in 2024. During the same period, the company's net loss widened by 217%. Potential investors should consider several significant risks. These include the possibility of consumer backlash, increased regulatory scrutiny, competitive pressures, declining profitability, a substantial debt load, a shareholder structure considered unfavorable, and a valuation that appears high when compared to competitors. Analysts forecast potential valuation outcomes ranging from an optimistic $15 billion to a pessimistic scenario where StubHub's valuation could fall below that of rival Vivid Seats (under $500 million) due to regulatory and competitive challenges. A more moderate projection places the company's valuation between $4 billion and $6 billion within a year. Consequently, financial advisors are cautioning investors against a hasty entry into StubHub's stock.