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Why I Love Hubspot Stock
I recently started buying shares in the company Hubspot, and I believe that this is a company that will experience massive growth. I heard about Hubspot for the first time when they bought the company The Hustle, and this intrigued me because The Hustle is a business media company so I assumed that Hubspot must be a very large media company. However, after researching the company further, I was shocked to find out that they are not. They are a SAAS (software as a service) company that is building amazing software to help businesses do better marketing, sales, etc. After seeing this, I began to wonder why they would be buying a media company. That is when I realized the genius behind what Hubspot is doing.
Hubspot has essentially found a way to market their software to business owners and get paid for doing it. The best kind of marketing that a business can do is the kind where they get paid to do it. The Hustle creates business content. Who consumed business content? People that want to start businesses. Hubspot bought a company whose content is consumed by their target market and when these people start their businesses, well, they will already have a firm understanding on what Hubspot can do for them. It's genius.
While researching the company further, I realized that The Hustle was just part of their plan. They have built a whole network of business podcasts that they can market through. Imagine if a company had an investing service and that company bought Finance by CWT. This website is frequented by people who are interested in investing so the owner of that company should be able to get this audience to buy their stuff. Hubspot how now accomplished something very similar with podcasts and newsletters.
This made me want to buy the stock. When a company accomplishes something like this, I know that that is a company that I want to own. Of course, this was not enough to get me to actually buy the stock. I needed to see if the stock's valuation made sense. Hubspot is, at this time of writing, valued at 22 billion dollars. They are also not profitable which a lot of my investments are in pre profit companies, but a pre profit company at a 22 billion dollar valuation seems like a lot especially since they brought in 1.3 billion dollars in 2021. Even with all this in mind, I still invested into the company. Even though I think that it is trading at a pretty hefty premium right now, the companies revenue is on the rise, and I believe that Hubspot could absolutely explode in growth. I'm not saying it will, but I believe that there is a strong possibility. I'm betting that they will execute correctly.
Only time will tell if I am correct in my assumption, but I made a small investment into the company, and I plan to add to it overtime because I do believe that they are on track to greatness.
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