HubSpot (NYSE:HUBS) shareholders trailed the market last month. Their stock dropped 12% in March compared to a 4.2% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.
The decline didn't do much to dent wider gains, though. HubSpot is still up significantly in 2021 after having trounced the market last year.
With no major operating news out of the company, the biggest factor dragging shares down was worsening sentiment toward tech stocks last month. Many cloud and software specialists, which had seen huge rallies off of pandemic lows, sold off in March.
HubSpot's CEO did step away from his job to recover from a snowmobile accident, the company said early in the month. But that situation shouldn't have any significant impact given its temporary nature.
HubSpot's fiscal first-quarter report should land in early May and is likely to show strong sales growth and improving profitability, in line with recent successes on these metrics. The company widened its user base and its product portfolio this past year, which is helping create a steady stream of recurring revenue from the software-as-a-service (SaaS) platform. Continued success on that project is the surest way toward positive returns for the stock.