Nvidia (NVDA) receives a spot on IBD Sector Leaders, our most rigorous screening. And alphabet (GOOGL) makes the IBD 50 while Google shares also join Metaplatforms (META) on the IBD Big Cap 20. But while none of these “Magnificent Seven” stocks reach triple the price to land on all three of these top stock lists, HubSpot (HUBS) achieves this impressive achievement.
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The ongoing enthusiasm for artificial intelligence has driven much of the demand – and growth – for Nvidia, Meta and Google. But through its HubSpot AI platform, the company has also become one of the top AI stocks to watch.
And now HubSpot stock is on the verge of moving back into buy range after finding support at its 50-day moving average. HubSpot is also set to report earnings on May 1st. Analysts forecast earnings growth of 25% to $1.56 per share. For the full year, they expect an 18% increase to $6.97 per share, followed by a 20% increase to $8.38 per share in 2025.
Although HubSpot has not joined Nvidia, Meta, Alphabet or other enterprise software stocks Salesforce.com (CRM) on this month’s Best Mutual Fund New Buys list shows clear signs of institutional demand.
HubSpot has an Accumulation/Distribution Rating of B+ and an Upside/Downside Volume Ratio of 1.5. Additionally, 76 funds with an A+ rating from IBD own the stock.
Will Google buy HubSpot? Rumor vs. reality
HubSpot offers a unified platform aimed at seamlessly connecting customer-facing teams using AI-powered engagement hubs. The Cambridge, Massachusetts-based company offers Smart CRM (Customer Relationship Management) and a connected ecosystem with over 1,500 App Marketplace integrations, a community network and educational content.
At the end of last year, HubSpot had around 205,000 customers in more than 135 countries.
On April 4, Reuters reported that Google was in talks to buy HubSpot. But in an April 7 report, analysts at Jefferies wrote that they “view an acquisition by GOOGL as unlikely given the likely regulatory scrutiny and the fact that HUBS uses AWS (Amazon Web Services).” Amazon.com (AMZN)) among others.”
After an initial spike on the Google-HubSpot talks report, HubSpot stock quickly fell.
HubSpot stock appears to be renewing its buy point
After sliding from an all-time high towards the end of 2021, HubSpot found a bottom in October 2022. Since then, the stock has remained in an overall uptrend, despite enduring a 20-week decline of 30%. sharp decline from August to December last year.
HubSpot formed a flat second-stage base with a 660 buy point. This entry was briefly largely deleted in the Google Buyout report, but soon slipped back under.
Showing its resilience, HubSpot quickly found support at its 50-day line, keeping its new base and buy point intact. This week the stock has risen, putting it just shy of breaking out of the 660 level again.
Meanwhile, Google stock has remained in buy territory since its breakout earlier this month. Alphabet reports earnings on Thursday.
On Wednesday, it looked like Nvidia might rise back above its 50-day line before the direction changed and the price fell more than 3%.
Meta stock also experienced a negative trend reversal and closed below its 50-day line. Although the Facebook parent company beat earnings estimates after the close on Wednesday, it was down in after-hours trading.
Amazon, which reported on April 30, also reversed lower and failed to hold support.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
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