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Why I'm adding Hubspot stock into my portfolio (It is the best in class in the CRM space).

Updated: Sep 10, 2022

KEYPOINTS:

๐Ÿ”‘ Most of Hubspot's products are voted as the best in the respective segments they operate in.

๐Ÿ”‘ Hubspot has the highest site traffic & search trends compared to their competitors

๐Ÿ”‘ Hubspot also has the strongest social media presence compared to their peers.


WORKING FILE:

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Table of contents:


Disclaimer: This communication is provided for information purposes only and is not intended as a recommendation or a solicitation to buy, sell or hold any investment product. Readers are solely responsible for their own investment decisions.

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Product Reviews

Customers reviews

  • When looking for reviews,

    • we ought to always favor customer reviews

      • over sites from reviewers

        • which may be biased

  • One of my favourite sites for customers' reviewers for software products is G2.


G2

  • When looking at Hubspot's main product segment,

    • the CRM market


> CRM segment







  • It has very good ratings from customers



  • and its ranked as 2nd best amongst it's peers

    • after Salesforce

      • Salesforce is a stock I would avoid at this stage

        • because they are currently in a large net debt position

          • which is a representation of an unhealthy balance sheet.



  • that leaves Hubspot as the best stock in the CRM space to invest in.



> Automated Marketing Software segment







  • Hubspot's second main product operating in the Automated Marketing Software space

    • also has fantastic reviews from users.



  • And its voted as the best in its class

    • when compared to peers,

    • in terms of:

      • Market Presence &

      • Customer Satisfaction rating




Gartner Peer Review

  • Using another source of review platform

    • we can see that Hubspot received pretty good ratings for their products on Gartner too.


  • Hubspot's CRM software

  • Hubspot's Automated Marketing Software


Mobile app ratings

  • Another source we can obtain unbiased customer reviews

    • is from the mobile app ratings from users

    • if the company offer mobile apps as a part of their services.


Android


  • We can see that:

    • there are reasonably high amount of ratings for Hubspot's CRM app

      • making the ratings more reliable

    • it has pretty high rating of 4.7 out of 5

    • both which are very good signs of high user satisfaction


IOS


  • Similarly it has pretty good reception from its users

    • on IOS app store too.



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Market Adoption rate

  • Next, we shall look at the market's adoption rate

    • for the products & services offered by the company.


Google search trend



  • When comparing Hubspot's Google search trend with its most renown peers in the CRM space

    • although Hubspot ranked 3rd in terms of search volume,

      • after Salesforce & Zoho

        • who have both been in the market much longer, hence its understandable

    • Its search volume by itself is growing at a high CAGR of 19%

      • in the past 16 years

        • since the company was founded in June 2006 [1]

      • this is a great sign of growth

        • in terms of market's awareness & interest for the company.



  • Hubspot is also well-known for their INBOUND events

    • which garners interests from digital marketers & professionals alike around the world.

      • it's a great opportunity for Hubspot to spread their brand awareness

        • and product offerings.



Site traffics

  • Next thing we can look at, is the amount of site traffics to Hubspot's website.

    • which appears to be in a healthy increasing trend over the past 10 years.

      • which is aligned with the google search trend's data above.



  • When compared to their peers'


Hubspot website's traffic is higher than the cumulative of its peers in the CRM space (source: semrush)
Hubspot website's traffic is higher than the cumulative of its peers in the CRM space (source: semrush)

  • One of the most noticeable thing is that

    • Hubspot's amount of organic traffic is higher compared to the

      • cumulative traffic amount of the other 3 most prominent players in the CRM space

    • this signals Hubspot's popularity in the CRM space.



Market Share

  • Hubspot Sales also has a healthy 19% market share

    • in the Sales Performance Management product segment.

  • and a commanding 37% in the Marketing Automation space.



Social Media followers trend

  • It is also important to observe the followers & engagement rate of the company's social media accounts

    • Especially if the company is operating in segments which's target market are spending:

      • alot of their time &

      • attention of them.



  • When compared to their peers


  • Hubspot have the highest amount of followers on platforms like

    • Instagram &

    • Twitter

    • while coming in close at second after Salesforce on

      • Youtube.


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Endnotes:

[1] https://en.wikipedia.org/wiki/HubSpot#:~:text=HubSpot%20is%20an%20American%20developer,and%20Dharmesh%20Shah%20in%202006.








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