HubSpot is trading 4.6% down at $220.59 after Wells Fargo downgraded the stock and slashed its price target, citing uncertainty surrounding the company’s transition to AI.
- Wells Fargo lowered its rating to Equal Weight and cut the price target to $225 from $300, noting that the AI shift creates near-term headwinds despite a constructive long-term outlook.
- The decline is exacerbated by a broader software sector selloff as investors rotate away from high-multiple SaaS names due to valuation pressure.
- Shares have remained under consistent pressure throughout the July 21 session following an initial drop during pre-market trading.