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HUBS vs NET
Which Stock Would AI Choose? HubSpot (HUBS) vs. Cloudflare (NET) Stock Comparison
Key Takeaways
- HUBS (HubSpot) reported roughly 20% revenue growth but reset its customer-growth expectations lower, triggering a sharp pullback from its 52-week high.
- NET (Cloudflare) delivered accelerating revenue growth near 36% and re-accelerating net retention, powering a multi-month rally toward record territory.
- The two names occupy different segments of software: HUBS is a customer relationship management (CRM) platform provider, while NET is an infrastructure and security (connectivity cloud) company.
- HUBS trades at a far lower valuation multiple but faces near-term execution pressure; NET carries a premium valuation with stronger momentum and a faster growth trajectory.
- Relative performance and market positioning diverge sharply, making this a useful contrast between a value-conscious software turnaround and a high-growth momentum story.
Introduction
Investors weighing software exposure often confront a familiar trade-off: a mature, profitable platform under transition versus a faster-growing disruptor priced for continued expansion. HUBS and NET crystallize that decision. HubSpot operates an agentic customer platform built around marketing, sales, and service tools, while Cloudflare provides a global connectivity cloud that secures and accelerates internet traffic. Both are increasingly tied to artificial intelligence (AI) demand, yet their recent price behavior, growth rates, and risk profiles differ meaningfully. This stock comparison is relevant for traders assessing relative momentum and for investors evaluating growth durability against valuation and execution risk.
HUBS Overview and Recent Performance
HubSpot is a customer relationship management (CRM) software company serving scaling businesses with marketing, sales, service, and content tools, increasingly marketed as an "agentic customer platform" powered by AI. In recent market activity, HUBS has faced notable selling pressure. Despite reporting second-quarter revenue of $911.7 million, up 20% year over year, and swinging to GAAP profitability, the stock declined sharply after management reduced its customer-growth assumptions. The company added roughly 7,000 net new customers in the quarter, below its prior expectation of 9,000 to 10,000, and guided to a slower pace of 5,000 to 6,000 net additions per quarter for the rest of the year.
Several factors explain the shift in sentiment. Management cited longer sales cycles, larger buying committees requiring C-suite approval, and a deliberate April change to how it sells AI agents—introducing trials and outcome-based pricing. Net revenue retention (a measure of expansion within existing customers) also eased to about 102%. On a constructive note, non-GAAP operating margin rose to roughly 20%, free cash flow improved, and the company repurchased approximately $531.9 million of stock during the quarter with an additional $1 billion authorized. The shares now sit well below their 52-week high, reflecting a market repricing of near-term growth expectations.
NET Overview and Recent Performance
Cloudflare operates a global connectivity cloud spanning security, performance, and developer services, positioning itself at the intersection of cybersecurity and AI-driven internet traffic. In recent weeks, NET has been among the stronger performers in software, rallying substantially over the past several months. Second-quarter revenue reached $696.1 million, up about 36% year over year, an acceleration from the prior year, with adjusted earnings per share of $0.29 exceeding consensus. The stock jumped roughly 15% immediately following the report and has continued to trade near multi-year highs.
Key drivers include accelerating large-customer momentum, with about 4,698 customers spending over $100,000 annually (up 27% year over year), and dollar-based net retention climbing to 120%. The developer platform, Workers, and the SASE (Secure Access Service Edge) and Zero Trust security suites have shown strong adoption, while management has emphasized rising AI-agent traffic as a structural tailwind. Sentiment has also been supported by analyst price-target increases and institutional buying. Offsetting these positives are valuation concerns, insider selling, and a decline in free cash flow margin during the quarter, alongside restructuring charges tied to an agentic AI-first operating model.
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Head-to-Head Comparison
At the business-model level, HUBS and NET serve different needs. HubSpot monetizes through subscription software for customer-facing teams, with revenue growth near 20% but decelerating as customer additions slow. Cloudflare monetizes network and security infrastructure, with growth re-accelerating toward the mid-30% range and expanding usage-based and "pool-of-funds" contracts.
Growth drivers diverge as well. HubSpot's narrative centers on AI adoption and moving upmarket into larger enterprises, but near-term execution has been pressured by pricing changes and elongated sales cycles. Cloudflare's story leans on AI-agent traffic, the Workers developer platform, and security demand, translating into accelerating retention and record large-customer additions.
Risk profiles present a clear trade-off. HUBS carries a comparatively modest valuation, a clean profitability trajectory, and an active buyback, but faces uncertainty around how quickly customer growth stabilizes. NET trades at a premium multiple relative to sales, with rising insider selling and a declining free cash flow margin, meaning the market is already pricing in substantial future success. Sector exposure also differs: HubSpot is sensitive to small-and-mid-market software budgets, while Cloudflare is tied to enterprise security and infrastructure spending. In terms of recent momentum, NET has clearly outperformed HUBS over the trailing period.
Tickeron AI Verdict
Based on observable trend consistency, growth momentum, and catalyst visibility, Tickeron's AI would likely favor NET over HUBS in the current environment. Cloudflare's re-accelerating revenue, improving net retention, and strong large-customer momentum suggest a more consistent positive trend, while HubSpot's downward revision to customer-growth assumptions and negative post-earnings reaction signal near-term execution risk. That said, valuation and cash-flow considerations introduce meaningful uncertainty for NET, and HUBS's lower multiple and profitability offer a different risk-reward profile. The AI's preference should be understood probabilistically—favoring relative positioning and momentum—rather than as a definitive or guaranteed outcome.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is HUBS is a Hold and NET is a StrongBuy.
HUBS | NET | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 53 | 22 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 73 Overvalued | 92 Overvalued | |
PROFIT vs RISK RATING 1..100 | 100 | 39 | |
SMR RATING 1..100 | 76 | 94 | |
PRICE GROWTH RATING 1..100 | 64 | 36 | |
P/E GROWTH RATING 1..100 | 98 | 100 | |
SEASONALITY SCORE 1..100 | 85 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
HUBS's Valuation (73) in the Information Technology Services industry is in the same range as NET (92) in the null industry. This means that HUBS’s stock grew similarly to NET’s over the last 12 months.
NET's Profit vs Risk Rating (39) in the null industry is somewhat better than the same rating for HUBS (100) in the Information Technology Services industry. This means that NET’s stock grew somewhat faster than HUBS’s over the last 12 months.
HUBS's SMR Rating (76) in the Information Technology Services industry is in the same range as NET (94) in the null industry. This means that HUBS’s stock grew similarly to NET’s over the last 12 months.
NET's Price Growth Rating (36) in the null industry is in the same range as HUBS (64) in the Information Technology Services industry. This means that NET’s stock grew similarly to HUBS’s over the last 12 months.
HUBS's P/E Growth Rating (98) in the Information Technology Services industry is in the same range as NET (100) in the null industry. This means that HUBS’s stock grew similarly to NET’s over the last 12 months.
| HUBS | NET | |
|---|---|---|
| RSI ODDS (%) | N/A | 2 days ago 76% |
| Stochastic ODDS (%) | 2 days ago 80% | 2 days ago 79% |
| Momentum ODDS (%) | 2 days ago 71% | 2 days ago 85% |
| MACD ODDS (%) | 2 days ago 71% | 2 days ago 90% |
| TrendWeek ODDS (%) | 2 days ago 72% | 2 days ago 78% |
| TrendMonth ODDS (%) | 2 days ago 79% | 2 days ago 81% |
| Advances ODDS (%) | 2 days ago 74% | 11 days ago 83% |
| Declines ODDS (%) | 4 days ago 72% | 3 days ago 78% |
| BollingerBands ODDS (%) | N/A | 2 days ago 76% |
| Aroon ODDS (%) | 2 days ago 78% | 2 days ago 74% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
HUBS’s FA Score shows that 0 FA rating(s) are green while NET’s FA Score has 0 green FA rating(s).
- HUBS’s FA Score: 0 green, 5 red.
- NET’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
HUBS’s TA Score shows that 2 TA indicator(s) are bullish while NET’s TA Score has 5 bullish TA indicator(s).
- HUBS’s TA Score: 2 bullish, 6 bearish.
- NET’s TA Score: 5 bullish, 4 bearish.
Price Growth
HUBS (@Packaged Software) experienced а -1.86% price change this week, while NET (@Computer Communications) price change was -2.18% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was -1.04%. For the same industry, the average monthly price growth was -5.64%, and the average quarterly price growth was +5.25%.
The average weekly price growth across all stocks in the @Computer Communications industry was -1.87%. For the same industry, the average monthly price growth was -3.34%, and the average quarterly price growth was +21.08%.
Reported Earning Dates
HUBS is expected to report earnings on Nov 11, 2026.
NET is expected to report earnings on Oct 29, 2026.
Industries' Descriptions
@Packaged Software (-1.04% weekly)Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.
@Computer Communications (-1.87% weekly)Computer communications industry develops technology that allows computing devices to exchange data with each other using connections/data links between nodes. Common types of computer network include Cloud (IAN), Internet, Wide (WAN, Local (LAN)/Wireless(WLAN) etc. The industry is an ever-more important part of technology, and is set to become even bigger as the Internet of Things (IoT) rapidly forays into the various aspects of our lives. Cisco Systems, Inc., Palo Alto Networks, Inc. and Arista Networks, Inc., Fortinet, Inc. are some of the major computer communications companies.
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NET and
Correlation & Price change
A.I.dvisor indicates that over the last year, NET has been closely correlated with COIN. These tickers have moved in lockstep 66% of the time. This A.I.-generated data suggests there is a high statistical probability that if NET jumps, then COIN could also see price increases.
| Ticker / NAME | Correlation To NET | 1D Price Change % | ||
|---|---|---|---|---|
| NET | 100% | +1.07% | ||
| COIN - NET | 66% Closely correlated | +1.54% | ||
| CLSK - NET | 64% Loosely correlated | -2.80% | ||
| AFRM - NET | 62% Loosely correlated | +1.73% | ||
| SNOW - NET | 62% Loosely correlated | +0.72% | ||
| HUBS - NET | 59% Loosely correlated | +6.08% | ||
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