Madrone Advisors Bets on StubHub After Its IPO

What happened

Madrone Advisors, LLC initiated a new stake in StubHub (NYSE:STUB), according to a quarterly Form 13F filed with the Securities and Exchange Commission on Nov. 14, 2025 (SEC filing). The filing shows Madrone acquired 75,780,055 shares valued at about $1.3 billion as of Sept. 30, 2025, representing 62.8% of its reportable U.S. equity holdings for the quarter. It's now the fund's largest holding.

What else to know

Top holdings after the filing:

• StubHub Holdings: $1.27 billion (62.8% of AUM)
• StoneCo: $479.2 million (23.6% of AUM)
• QXO: $181.9 million (9.0% of AUM)
• Vanguard Total World Stock Index Fund ETF: $60.6 million (3.0% of AUM)
• Figma: $28 million (1.4% of AUM)

As of Nov. 14, 2025, shares of StubHub were priced at $14.87; one-year price change and alpha versus the S&P 500 are not available.

The stock was 46.7% below its 52-week high as of Nov. 15, 2025.

Company Overview

Company Snapshot

• StubHub facilitates secondary ticket sales for live events, including sports, concerts, and theater, across more than 200 countries.
• The company generates revenue primarily through transaction fees on its digital marketplace, connecting buyers and sellers for ticket resale.
• Main customers include consumers seeking access to sold-out or premium events, as well as ticket sellers looking for a secure resale platform.

StubHub operates one of the largest global marketplaces for secondary event tickets, leveraging technology to streamline the buying and selling process for millions of users. Its scale and digital-first approach enable broad reach and liquidity in the event ticketing market. The company’s platform-driven model positions it competitively by offering convenience, security, and access to a wide range of live entertainment experiences.

Foolish take

StubHub recently executed an initial public offering (IPO), going public on Wednesday, Sept. 17, 2025 with shares priced at $23.50. The stock began to trade on the New York Stock Exchange (NYSE) under the ticker symbol "STUB."

Madrone Advisors runs a concentrated portfolio, and clearly has conviction in StubHub, making it its top holding by far after the IPO. The short-term results haven't been good, with StubHub shares nearly 50% below its offering price, as of Dec. 8.

Investors should be thinking long-term, though, and StubHub did use the proceeds from its IPO to repay about $750 million of debt. A lesson for investors is to add to portfolio positions over time. Buying in thirds can help avoid getting hit with short-term stock declines, which can be difficult to recover from.

Glossary

13F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.

Assets Under Management (AUM): The total market value of investments managed by a fund or firm on behalf of clients.

Position: The amount of a particular security or asset held by an investor or fund.

Stake: The ownership interest or share an investor holds in a company.

Trailing Twelve Months (TTM): The 12-month period ending with the most recent quarterly report.

Secondary ticket sales: The resale of event tickets after their original purchase, often through online marketplaces.

Transaction fees: Charges collected by a platform or broker for facilitating a buy or sell order.

Liquidity: The ease with which an asset can be bought or sold in the market without affecting its price.

Digital marketplace: An online platform where buyers and sellers transact goods or services, such as event tickets.

Reportable holdings: Securities that must be disclosed in regulatory filings, such as the SEC's Form 13F.

Market capitalization: The total value of a company's outstanding shares, calculated as share price times shares outstanding.

Howard Smith has positions in QXO and StoneCo. The Motley Fool has positions in and recommends StoneCo. The Motley Fool has a disclosure policy.