HubSpot (HUBS): Examining Valuation After OpenAI's Move Shakes Up SaaS Competition

HubSpot shares took a clear hit this week after OpenAI stepped into enterprise application software, introducing AI-driven tools directly targeting the same customer needs that HubSpot serves.

See our latest analysis for HubSpot.

This week’s slide comes after a sharper sell-off earlier in the year as investors weighed the risk of intensified AI-driven competition. Short-term share price returns paint a muted momentum picture, but over a three-year period, HubSpot’s total shareholder return is still solidly positive, highlighting the company’s resilient growth story despite recent setbacks.

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The real question now is whether HubSpot’s recent slide has created an attractive entry point for investors, or if the share price already reflects the company’s future growth potential in a rapidly evolving software landscape.

Most Popular Narrative: 35% Undervalued

Compared to HubSpot’s last close at $451.87, the most widely referenced narrative suggests a fair value that is significantly higher. This sets up a high-stakes debate over whether investors are missing substantial upside or if expectations risk getting too far ahead of reality.

The company's quick pivot to adapt to shifting buyer behavior, such as declining traditional SEO and the rise of AI-powered search, positions HubSpot to capture new sources of lead generation (YouTube, social, newsletters, LLM citations), supporting customer growth and improving the durability of top-line expansion.

Read the complete narrative.

Curious how analysts justify such a bold premium? Their core logic hinges on dramatic shifts in customer acquisition strategies and a future earnings rebound not yet reflected in the share price. What makes this narrative’s numbers so ambitious? Get the full story that is driving this valuation and see which forecasts underpin it.

Result: Fair Value of $695.33 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing disruption in SEO from generative AI and HubSpot's heavy exposure to small businesses could still present challenges for long-term revenue stability.

Find out about the key risks to this HubSpot narrative.

Build Your Own HubSpot Narrative

If you would rather chart your own course, you can quickly explore the numbers and build your unique outlook in just a few minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding HubSpot.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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