StubHub Stock Falls on First Day as Investors Eye Competition and Regulation
StubHub made its debut on the New York Stock Exchange on September 17, 2025, trading under the ticker symbol “STUB.” The online ticket resale giant priced its initial public offering (IPO) at $23.50 per share, right in the middle of its estimated range of $22 to $25. The sale of approximately 34 million Class A shares generated $800 million in fresh capital for the company.
The IPO valued StubHub at between $8.1 billion and $9.3 billion depending on the valuation method used. The stock opened at $25.35 and initially moved slightly higher, but later reversed course and closed the day at $22 per share. This marked a 6.4% decline from its IPO price, a somewhat lukewarm reaction from public markets following months of anticipation.
StubHub’s road to going public has been long and turbulent. The company initially delayed its IPO plans in April, citing market instability related to U.S. trade policies under the Trump administration. A second delay occurred in mid-2024 due to continued volatility in global equities. Founded in 2000 by Eric Baker, StubHub was sold to eBay in 2007 for $310 million. Baker later reacquired the company in 2020 for approximately $4 billion through his firm Viagogo, setting the stage for its return to independence.
Financial data leading into the IPO highlighted modest growth. StubHub generated $827.9 million in revenue during the first half of 2025, a year-over-year increase of around 3%. Gross merchandise sales (GMS), a broader measure of consumer spending on the platform, grew by 11%. However, the company remains unprofitable, with its net loss widening compared to the previous year.
StubHub operates in an increasingly competitive ticketing market. Its main rivals include SeatGeek, Vivid Seats, and the industry giant Ticketmaster, owned by Live Nation Entertainment. Regulatory pressures are also mounting. New U.S. legislation requires platforms to display “all-in pricing,” which includes all fees and charges upfront. CEO Eric Baker acknowledged that complying with these rules could cause a temporary drop in revenue but emphasized long-term benefits for customer trust.
Post-IPO, Eric Baker retains near-total control over StubHub through a dual-class share structure. While only a portion of the company’s shares were sold to the public, Baker controls nearly 90% of the voting rights. The company plans to use proceeds from the IPO to reduce debt and expand its business operations, including entering the primary ticket issuance space.
Despite growing top-line figures, StubHub’s profitability remains under scrutiny. Analysts have expressed concerns about tightening margins, increasing operational costs, and the potential impact of regulatory shifts on its business model. These concerns likely contributed to the subdued market reaction following the IPO.
StubHub’s offering arrives amid a resurgence of high-profile tech IPOs in 2025. Companies such as Klarna, Figma, Gemini, and Circle have all entered the public markets in recent months, with many experiencing strong first-day performances. StubHub’s more cautious reception may reflect investor hesitation about legacy marketplace models, especially in sectors where regulation and disruption are ongoing themes.
Nonetheless, investor interest remains high. The IPO was reportedly oversubscribed, indicating demand exceeded supply. This shows that despite short-term headwinds, the market still sees long-term potential in StubHub’s platform and the live events sector more broadly.
StubHub’s return to public markets marks a pivotal moment for the 25-year-old company. With the live entertainment industry rebounding after pandemic-era disruptions, the firm now faces the challenge of converting brand strength and market presence into sustainable profitability. Time will tell whether StubHub can navigate its competitive landscape while meeting the expectations of public shareholders.
