StubHub Holdings (NYSE: STUB) stock wasn't quite a golden ticket on Thursday. Investors sold out of the event ticketing company's equity rather aggressively after it released a dispiriting earnings report. The shares closed the day more than 10% down in price.
This, despite StubHub posting strong growth numbers in its second quarter. It took in revenue of just over $573 million in the period, for a 33% year-over-year increase. That was on the back of a 34% rise in gross merchandise sales (GMS) to $3.1 billion.
Much of these gains, however, came from soccer's World Cup. This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » StubHub narrowed its attributable net loss under generally accepted accounting principles (GAAP) to $40,000 (effectively zero on a per-share basis) from the year-ago deficit of almost $76 million. But bottom-line expectations were relatively lofty for the quarter.
Analysts tracking StubHub stock were expecting a net profit, and an impressive one at that, of $0.24 per share. At least the company beat on revenue, as the pundit consensus was a bit north of $532 million. In the quarter, StubHub didn't seem to be able to rein in its spending.
Total costs and expenses rose 37% to nearly $554 million; that's a higher percentage than the revenue change. General and administrative spending was a culprit here, nearly doubling to over $146 million. At least StubHub is becoming slightly more hopeful about the future.
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