HubSpot ( HUBS ) stock is Monday’s pick for the IBD 50 Stocks to Watch as shares of the artificial intelligence leader broke below a flat-base buy zone. AI stocks got a lift on the news that Google parent the alphabet (GOOGL) was interested in acquiring the company.
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HubSpot develops customer relationship management software that integrates marketing, sales, customer service, content, operations and commerce into one platform. Its system of five modules, called hubs, can be used alone or bundled together.
The Platform is used to host web pages, create blogs, manage sales leads and customers, and analyze and track user behavior.
Moreover, it uses AI in its website generator, content and email writer, meta description generator and social media blog writer.
Ease into AI Stocks from the Buy Zone
HubSpot stock broke out of a flat base on heavy volume and hit a 660 buy point on news of the Google purchase on April 4. AI stock has traded around the 5% buy zone since the breakout – peaking at 693, according to market surge pattern recognition.
HubSpot fell more than 2% on Monday and is back below a buy point. The stock is finding support at its 21-day moving average after testing the line on Wednesday. AI stock is up about 13% so far this year.
Earnings increase but decrease.
HubSpot topped fiscal fourth-quarter revenue and sales estimates on February 14. Profit growth slowed from three quarters of triple digits to 59% in the fourth quarter.
Analysts estimate 25% revenue growth for the first quarter and 17% growth for the second quarter. Sales growth has ranged from 24% to 27% over the past five quarters.
Estimates for the full year 2024 show 18% profit growth and 20% in 2025. HubSpot is expected to report its fiscal first quarter earnings around May 1. AI stock has the best possible 99 IBD earnings per share rating.
Follow Kimberley Koenig on X/Twitter for more stock market news. @IBD_KKoenig.
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