HubSpot Stock Climbs Amid Buzz Over Artificial Intelligence

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by Jacob Solomon Mar 17, 2023 News
HubSpot Stock Climbs Amid Buzz Over Artificial Intelligence
$0.99 0.25% 66%
  • Shares recently pulled back; now just below 399.65 entry point
  • Stock found support at key 21-day exponential moving average
  • But investors may want to wait for volume pickup before buying

Pull back.

A stock may pull back after a breakout, often to the 50-day line. A rebound from the first or second visit to the 50-day can be a buying opportunity, especially for existing holders to add some shares.

As the software maker hovers near a buy point, it's the IBD Stock of the Day. After a big run, HUBS stock pulled back in March.

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Sales and marketing software is sold to small and mid-sized businesses. Digital channels include internet search engines and social media

The stock of the company has increased in value. The IGV, which is made up of many of the major enterprise software players, is up 12%.

HUBS stock increased in value after its fourth-quarter earnings report. The company reported earnings of $1.11 a share. The revenue increased to $470 million.

Friday's share price was down to 386.13.

HUBS Stock Finds Support

The stock is close to an entry point. HUBS stock had support at its 21-day exponential moving average. The biggest stock market winners tend to find support at the 21-day mark after a break.

The area where HUBS stock traded before the earnings beat is where its relative strength line is. It's a good idea for investors to wait for a pick-up in volume.

Visitors to customer websites can be converted into paying customers with the help of HubSpot. Sales automation and customer relationship management are now included in the company's offerings.

The high end of the market is dominated by Adobe Systems andSalesforce.

HubSpot And Generative AI Stocks

The software company is seen as a stock to watch. The company could get a boost from artificial intelligence.

Artificial intelligence creates computer programming code. Marketing, advertising, drug development, legal contracts, video gaming, customer support and digital art are some of the uses of the new form of artificial intelligence.

In February, there were trials of "content assistant" and "chat spot.ai".

A number of marketing and customer service use cases can be solved with generative artificial intelligence. There are immediate process efficiencies with automated content creation.

The relative strength rating of the company is 93. The best stocks have an average rating of 80.

The stock has anAccumulation/Distribution rating of B-plus. The rating is used to measure institutional buying and selling in a stock.

Heavy institutional buying and selling is referred to as A+ and E. As neutral as the C grade is, think of it that way.

HUBS Stock: Restructuring Move

The restructuring plan was announced by the company in January. About 500 employees were laid off by the company. Some leases were consolidated to generate savings for the company.

The company has projected earnings in a range of $4.24 to $4.32 a share for the next five years. Revenue is expected to be in a range of $2 billion to $2 billion.

"We believe that HubSpot is still in the early stages of driving operating margins higher, and that's why we think it's important to keep an eye out for it," said the analyst.

HUBS stock is seen as a market share gainer by an analyst.

"With continued execution across multiple channels and ongoing consolidation of the vast SMBs front office apps market with the leading platform, we believe HubSpot is positioned to drive mid-20s revenue growth," he said in a note.

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