Why HubSpot Stock Fell Another 3% Today
Shares of HubSpot (NYSE: HUBS) were down 3% today as of market close. It caps off a terrible week for it and other fast-growing companies getting dropped by investors after the Federal Reserve indicated an interest rate hike is on the way. HubSpot finished the week down nearly 23%.
What do the Fed's interest rate decisions have to do with HubSpot? The company does have some debt on its balance sheet ($400 million), but it's in the form of notes that can be converted to stock and bears a low fixed interest rate. In fact, the company has $288 million in cash and another $882 million in short-term investments on hand, so a higher interest rate could actually even benefit businesses like this that keep extra liquidity invested in interest-bearing investment vehicles.
Image source: Getty Images.
Source Fool.com
