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Stock impact report

StubHub downgraded to Neutral by Wedbush after weak quarterly results [Yahoo! Finance]

StubHub Holdings, Inc. Class A (STUB) 
Company Research Source: Yahoo! Finance
StubHub Holdings was downgraded to Neutral from Outperform by analysts at Wedbush Securities following weaker-than-expected quarterly results and reduced visibility into growth from the company's direct ticket issuance business. StubHub reported second-quarter gross merchandise sales (GMS) of about $2.3 billion, down roughly 8% year over year, missing Wedbush's estimate of a 1.1% decline and consensus expectations for a 2.8% drop. Excluding the impact of events tied to Taylor Swift, GMS rose about 6% year over year. Revenue fell 16% from a year earlier to $449 million, about 7% below expectations, implying a take rate of 19.2% versus the 19.5% analysts had projected. Adjusted EBITDA totaled $63 million, around $3 million below estimates, with a margin of 13.9% roughly 30 basis points below consensus forecasts. "Importantly, we have limited conviction and visibility today in the value of the direct issuance business, with management's lofty expectations for the segment unabl Show less Read more
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