Nvidia (NVDA) earns a spot on IBD Sector Leaders, our most stringent screen. And Alphabet (GOOGL) makes the IBD 50, while Google stock also joins Meta Platforms (META) on the IBD Big Cap 20. But while none of these Magnificent Seven stocks score a trifecta to land on all three of these premier stock lists, HubSpot (HUBS) pulls off that impressive feat.
X
The continued buzz around 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 emerged as one of the top AI stocks to watch.
Before shares of Meta sank on earnings, HubSpot stock stood poised to pop back into buy range after finding support at its 50-day moving average. While it fell Thursday morning, HubSpot has held support at that benchmark and bounced above it.
Alphabet, which is set to report after today’s close, gapped down in the morning but has rebounded into its buy zone.
HubSpot is also on deck to report earnings on May 1. Analysts forecast earnings growth of 25% to $1.56 per share. For the full year, they expect an 18% increase to $6.97 a share, followed by a 20% rise to $8.38 per share in 2025.
Although HubSpot did not join Nvidia, Meta, Alphabet or fellow enterprise software stock Salesforce.com (CRM) on this month’s list of new buys by the best mutual funds, it shows clear signs of institutional demand.
HubSpot sports a B+ Accumulation/Distribution Rating and a 1.6 up/down volume ratio. Plus, 76 funds with an A+ rating from IBD own the stock.
Will Google Buy HubSpot? Rumor Vs. Reality
HubSpot provides a unified platform aiming to seamlessly connect customer-facing teams using AI-powered engagement hubs. The Cambridge, Mass.-based company provides Smart CRM (customer relationship management) and a connected ecosystem with over 1,500 App Marketplace integrations, a community network and educational content.
As of the end of last year, HubSpot had about 205,000 customers across more than 135 countries.
On April 4, Reuters reported that Google was in talks to buy HubSpot. But in an April 7 report, Jefferies analysts wrote that they “see an acquisition by GOOGL as unlikely given probable regulatory scrutiny and the fact that HUBS uses AWS (Amazon Web Services from Amazon.com (AMZN)), among other reasons.”
After an initial spike on the report of the Google-HubSpot talks, HubSpot stock quickly retreated.
HubSpot Stock Looks To Regenerate Buy Point
After sliding off an all-time high toward the end of 2021, HubSpot found a bottom in October of 2022. Since then, the stock has remained in a general upward trajectory, although it had to weather a 20-week long, 30%-deep decline from August to December of last year.
HubSpot went on to form a second-stage flat base with a 660 buy point. It briefly cleared that entry in heavy volume on the Google buyout report, but soon slipped back below it.
Showing resilience, HubSpot quickly found support at its 50-day line, keeping its new base and buy point intact. As Meta sinks and Alphabet feels pressure ahead of earnings, that resilience is getting put to the test. See if HubSpot can weather the market storm and close the week with its buy point intact.
On Wednesday, Nvidia looked like it might get back above its 50-day line before reversing direction to more than a 3% drop. The stock is currently up over 3% Thursday, holding above the 800 mark.
Amazon, which reports on April 30, gapped down below its 50-day line Thursday in volume trending 50% above average.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
YOU MAY ALSO LIKE:
Top Funds Gorge On Nvidia, Meta And This Non-AI Sector
Nvidia Reveals 8 ‘Secrets’ For When To Sell Stocks. No. 2 Is Key.
MarketSmith Is Now MarketSurge. Explore What Else Is New.
Hone Your Investing Skills With IBD Meetup Groups
Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
