Why StubHub Stock Popped by 15% Last Month

StubHub (NYSE: STUB), the online event ticket purveyor, wasn't a golden ticket for investors in the weeks after its September IPO. In December, however, the company delivered several pieces of good news, and that was enough to boost its share price by 15% across the month. As 2025 came to a close, StubHub was still notably below its IPO price, but it looked better positioned for a recovery.

Variety show

On two successive days in early December, StubHub made a pair of announcements about its business. The first was its launch, in collaboration with U.K.-based live event specialist ATG Entertainment, of Theatre Week. As the name suggests, this is a week-long event, held in mid-December, during which StubHub customers can receive a $50 credit when they buy a ticket to select Broadway plays.

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The second announcement concerned a new StubHub partnership. This one is with the niche women's soccer league World Sevens Football, under which the ticket company is to be the official direct issuance partner selling tickets for league matches.

Neither of these arrangements is likely to be a huge revenue earner for StubHub (it's perhaps revealing that the company didn't proffer any forecasts as to how much it might make). Together, though, they indicate that StubHub is opportunistically broadening its scope and reach, which feels like a smart way to establish a reputation as a go-to provider of tickets to a wide range of live events.

Continuing on that route, deeper in the month, StubHub announced an expansion of its web of direct issue ticket arrangements with entertainment industry partners. Through these, it will serve as the ticket retailer for a clutch of special events throughout the U.S. These include the annual BeachLife music festival in California, and a national tour of the Nutcracker Magical Christmas Ballet.

Finally, just a few days before Christmas, StubHub revealed it's vaulting further into the modern tech era. The company launched its app on OpenAI's ChatGPT, the go-to artificial intelligence (AI) platform for many people seeking AI assistance.

Dependent on trends

Personally, I like companies that are restless and assertive in expanding their businesses, particularly when they're new to many investors, like StubHub was in the waning days of last year. I also find it admirable that management is patient and determined enough to build its presence incrementally, securing partnerships and distribution deals with a variety of entertainment partners.

That being said, the entertainment industry is fickle by nature, being extremely trend-driven. Live experiences are currently in high demand; however, this could change quickly if there's an economic slump of any depth. While I believe StubHub has talented managers in its ranks and better-than-average potential as a business, it's currently a risky investment. I'd give it a miss just now.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.