We’re Waiting For The Next Tech Selloff To Add To Our HubSpot Position

Summary

  • HubSpot fundamentals remain superb and we think the company can continue to grow.
  • The name is not well known and we would expect more attention from the market as time goes by – that can be a positive catalyst in itself.
  • The stock has been on a huge runup and we’ve benefitted from this in staff personal accounts.
  • We aim to add to our current holdings but believe patience will deliver a better in-price than today.
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“Who?”

… is the response you’ll get from most folks if you mention HubSpot (HUBS) to them. Or, sometimes, “wait, are they still around?”. HubSpot dates from the early days of the Second Coming Of The Internet, which you can silicon-date to around 2010. In those Dark Ages between dot-com antiquity and tech’s current Great Leap Forward, some bright spark invented a thing called inbound marketing. This was a cunning ruse designed to displace the enterprise sales function, the single biggest source of money-eating and rabble-rousing in your average enterprise software business. Today, inbound marketing is just how you do things – you put content out there and see who you can reel in with it, then convert their interest into a purchase. Works in consumer above all else but is growing in stature the enterprise too. But when HubSpot was young, this was a strange notion indeed.

Anyway, fast forward a decade or so and the company continues to perform extremely well. All aspects of its fundamentals are strong, from growth through accounting profitability to cashflow to balance sheet. We’ve shouted this loud and often – here’s a note of ours from November 2020.

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