So, you thought Google was going to buy HubSpot? You weren’t alone. 

(Source: Giphy) 

The rumor mill was churning so hard you could almost hear the gears grinding. Wall Street analysts were buzzing, investors were drooling, and HubSpot’s stock was doing a TikTok dance as it rallied to a peak of 12.16%.

But now, reality has set in for Hubspot this week as Google decided to shelve the acquisition talks, causing Hubspot’s stock to plunge faster than it skyrocketed up. 

(Source: CNBC) 

I mean it was good while it lasted right? Especially considering the intentions of the deal in the first place were viable for both companies. 

You see, earlier this year, whispers started circulating that Alphabet (Google’s fancy parent company name) was eyeing HubSpot, the beloved CRM and marketing software company. 

(Source: CNBC) 

Reports from Reuters and Bloomberg suggested that Google was considering making an all-stock offer as Google pictured integrating Hubspot's tools into their own ecosystem. 

Which in turn would create a CRM behemoth that would seriously leave competitors like Salesforce and Microsoft sweating bullets. 

(Source: Giphy) 

But just as quickly as the hype train left the station, it derailed. Bloomberg reported that talks never even reached the point of detailed due diligence. Google’s interest fizzled out, possibly deterred by the looming specter of antitrust regulators ready to pounce on any big tech mergers. 

And just like that, HubSpot’s stock dropped 24% this week, leaving investors with a bad case of whiplash.

(Source: Giphy) 

This was of course, it’s worst plummet since 2020 as Hubspot's market cap shrank to around $25 billion (a far cry from that $33 billion valuation that it had just days before). On the other side, Google came out unscathed as its shares are up 8.12% for the month. 

(Source: Google Finance) 

However, while most investors have completely written Hubspot off with bad tastes in their mouth - RBC analysts have arisen as the voice of reason amidst the chaos. 

(Source: Giphy) 

According to reports, they weren’t surprised by Google’s cold feet. In fact, they thought the whole thing might be a blessing in disguise. Why?

(Source: Yahoo Finance) 

Well because HubSpot, they argued, might be better off flying solo. The company has been clearly making waves with its move upmarket, multi-product adoption, and the accelerating momentum of its Service Hub. Plus, with the GenAI trend, HubSpot could be looking at margins exceeding 30% in the medium term.

(Source: ManoByte) 

So as investors lick their nasty wounds filled with losses, others are no doubt seeing an opportunity in the making. According to analysts, HubSpot’s stock is now trading below 10x its estimated revenue for 2024. 

Which is why (no surprise) RBC, slapped an “outperform” rating on the stock, with a price target of $700. Basically echoing Warren Buffet’s famous “”Buy when there’s blood in the streets'' line. Classic! 

(Source: Giphy) 

So in short, even though the Google acquisition would have been a game-changer, Hubspot staying independent may not be the worst outcome for the company. Sure, getting a fat check for their efforts would’ve been nice…

(Source: Giphy) 

But now Hubspot can still continue to innovate without all the regulatory headaches that come with being a part of a tech giant like Google. 

At the end of the day, this just continues to remind us that the stock market is legit wild folks. Anything can happen… one day you’re up, the next you’re down. 

(Source: Giphy) 

But if there’s one single lesson we can learn from this Hubspot-Google fallout it’s this:

Don’t count your chickens before they hatch - or, in this case, don’t be dumb and count your unrealized gains before the acquisition is finalized. The end. Aaaaand thanks for coming to my Ted Talk this morning…

Anyways, all jokes aside, could Hubspot end up being a massive buy like RBC analysts think it is? Only time will tell, but in the meantim I truly hope you have a wonderful Thursday everyone, and until next time, keep on cashing checks and breaking necks homies… 

Stocks.News has positions in Google and Microsoft as mentioned in the article.