1. Hubspot, Inc. (NYSE:HUBS)
Number of Hedge Fund Holders: 80
Hubspot, Inc. (NYSE:HUBS) ranks first on our list of the best marketing stocks to buy now. The marketing company develops and offers software products for inbound marketing, customer services, SEO, and sales, for businesses of all sizes.
Hubspot, Inc. (NYSE:HUBS) serves over 228,000 customers in over 135 countries. As of Q2 2024, the company grew its customers by 23% and revenue by 20%. The company is focused on providing premium marketing and CRM services to small and medium-sized businesses. Hubspot has been striving to provide a complete suite of products to customers rather than stand-alone products, and it would not be an exaggeration to say that it has been quite successful in doing that.
The company is now home to several suites of products including the marketing hub, the sales hub, the service hub, the content hub, the operations hub, and the commerce hub. Hubspot, Inc. (NYSE:HUBS) was one of the first companies to integrate artificial intelligence into its product offerings. The marketing giant has been launching new AI tools rapidly and in September, Hubspot, Inc. (NYSE:HUBS) added another name to its family. On September 18, the company launched Breeze, a new embedded tool focused on data enrichment.
Overall, Hubspot, Inc. (NYSE:HUBS) was one of the first companies to provide a complete suite of marketing solutions to customers and is one of the first companies in the industry to pour capital into AI. This puts the company at an advantage, explaining why 80 hedge funds were bullish on the stock at the close of Q2 2024.
Artisan Partners’ Artisan Mid Cap Fund stated the following regarding HubSpot, Inc. (NYSE:HUBS) in its Q3 2024 investor letter:
“Along with Dexcom and Celsius, a notable trim in the quarter was HubSpot, Inc. (NYSE:HUBS). HubSpot is a leading cloud-based customer relationship management software provider for small-to-medium businesses. The stock was a top performer in 2023 as it meaningfully improved its profitability after several years of heavy investment. However, as we mentioned earlier in this letter, the environment for cloud software providers has been challenging in 2024 as macroeconomic pressures have impacted customer spending. Our long-term conviction remains intact, but we reduced the position due to near-term uncertainty. Meanwhile, we are encouraged by the company’s efforts to leverage AI advances to help internally (e.g., more efficient software development) and externally (e.g., new agent-based apps to help customers extract more value out of its products).”
Overall, HUBS ranks first among the 7 best marketing stocks to buy according to hedge funds. While we acknowledge the potential of marketing companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HUBS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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