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Hub Cyber Security (HUBC) Stock Rose 68% After Post-IPO Drop

Simon Mugo trader
Updated 16 May 2023

The Hub Cyber Security (NASDAQ: HUBC) stock price rallied 68% today after falling over two days following its Wednesday, March 1, 2023, IPO via a SPAC merger with Mount Rainier Acquisition Corp. The company’s stock quickly fell from its IPO high of $2.69.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The drop in Hub Cyber Security (HUBC) stock could be attributed to the typical post-IPO blues faced by most companies that decide to go public as investors debate whether the company is overvalued or undervalued.

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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY

Investors were initially unconvinced that the company was worth over $1 billion, given the initial estimates that priced each HUBC share at $10. Some analysts claimed the company’s shares were worth $36 each, or $3.6 billion, instead of the $1 billion valuation. 

However, the IPO has left HUBC shares worth a fraction of their initial estimated value of $10 since they were trading at just under $2.00 at the time of writing. As a result, Hub Cyber Security joins the long list of companies that IPO’d via a SPAC merger only to lose most of their value after the IPO. 

Hub Cyber Security is an Israeli company that offers specialised cyber security services to protect sensitive government and commercial data. The company has a proprietary encryption model that can prevent hostile intrusions at the hardware level. The firm also offers a novel collection of data theft prevention solutions. 

The listing of HUBC shares on the Nasdaq reflects its Israeli share price, and the company is now valued at close to $10 million. Investors are cautious about cybersecurity companies, whose claims and sales projections may be hard to confirm.  

Hub Cyber Security was formed by former Israel’s Defence Forces (IDF) members specialising in intelligence operations. The firm’s employees are former members of the IDF's 81 and 8200 elite intelligence units. 

Only time will tell whether the cybersecurity firm shall reach its lofty ambitions and grow its market valuation to multiple millions. 

*This is not investment advice. 

Hub Cyber security (HUBC) stock price. 

The Hub Cyber Security (HUBC) stock was trading up 68% at $2.10, from Thursday’s closing price of $1.25.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading