Hubspot stock is a rare opportunity right now, this investor says

Teal Linde of Linde Equity Fund says HubSpot (HubSpot Stock Quote, Chart, News, Analysts, Financials NYSE:HUBS) represents a compelling opportunity following a significant pullback, pointing to its strong growth profile and resilient business model.

Speaking on BNN Bloomberg Market Call on March 16, Linde said HubSpot has carved out a strong position as a mid-market alternative to Salesforce, offering integrated software that helps companies manage marketing, sales and customer service in one platform.

“HubSpot is very similar to Salesforce, but Salesforce caters to large companies, which opened up the opportunity for HubSpot in the mid-sized and small business market,” he said.

Linde said the company’s platform functions as a centralized “system of record,” allowing businesses to integrate and manage customer data across operations, which makes it difficult to replace and supports long-term demand.

“It basically helps companies manage everything for their marketing, their sales, their customer service… all integrated and secured,” he said.

He added that HubSpot is expected to grow revenue by about 18% this year, with earnings rising at a faster pace, while trading at roughly 21 times forward earnings, in line with the broader market and large-cap peers such as Microsoft.

“It’s very rare to find companies growing this fast, trading at market-average multiples,” Linde said.

Addressing investor concerns that artificial intelligence could disrupt the software sector, Linde said the risk is more limited for large, integrated platforms than for smaller, single-purpose tools.

“You want to look for a moat… enterprise platform-based software is probably going to be more resilient,” he said.

He also pushed back on the idea that companies will increasingly build their own software using AI, noting that businesses have historically preferred commercial solutions over in-house development due to reliability, security and ongoing support.

“The idea that companies are going to start creating their own software rather than relying on established providers—I don’t see that happening,” he said.

Linde said the recent selloff in software stocks has been broad-based, creating opportunities for investors to selectively buy higher-quality platforms positioned to endure.

HubSpot shares have fallen 56.4% over the past 12 months and 41.6% over five years. Among analysts, 32 rate the stock “Buy,” four “Hold,” and none “Sell,” with a consensus price target of US$360.09.

-30-