What happened
HubSpot (HUBS -0.01%) shareholders beat the market on Wednesday as shares rose 5% by 10:30 a.m. ET compared to a 0.4% increase in the wider market. Shares retreated from that quick high but remain ahead of the market in early trading.
The boost was supported by a rebound in many growth stocks that, like HubSpot, have sold off over the last few weeks.
Image source: Getty Images.
So what
The enterprise software specialist benefited from a more positive market environment compared to recent weeks. The Nasdaq Composite index was up 1% in early trading on Wednesday, or about double the gain in the wider S&P 500. HubSpot likely attracted more value-conscious investors, too.
Shares had slumped by over 30% in just the first two weeks of 2022 trading after diving in late 2021. Those moves laid the foundation for a rebound as soon as investors started favoring tech stocks again.
Now what
There's no telling whether Wednesday's rally was the beginning of a wider shift that will help HubSpot recover the ground it has lost since setting an all-time high in November. Longer-term returns will depend on management's ability to continue growing its customer list while expanding the platform into more services that companies value.
The news has been good on that score. Sales were up 49% in the third quarter and are projected to rise 34% for the full 2021 fiscal year. HubSpot will announce its actual results, along with its official outlook for 2022, in early February. Until that report, investors should brace for continued volatility that tracks along with wider sentiment shifts around growth stocks.
