Is Eventbrite Inc. (EB) the Best Tech Stock to Buy Right Now Under $10?

As the world emerges from the COVID-19 pandemic, the event management landscape is evolving, and so are the investment opportunities within it. One tech stock that has caught the eye of many investors is Eventbrite Inc. (EB), a ticketing and event management platform that has weathered the storm and is poised for growth. But is Eventbrite the best tech stock to buy right now under $10? Let's dive into the data and find out.



First, let's examine Eventbrite's current valuation and growth potential. As of now, Eventbrite is trading at around $5.30 per share, with a market capitalization of approximately $2.65 billion. The company's price-to-earnings (P/E) ratio is around 1.5x, and its price-to-sales (P/S) ratio is around 0.2x. These metrics indicate that Eventbrite is undervalued compared to other tech stocks under $10, presenting an attractive entry point for investors.

Looking at Eventbrite's revenue growth, the company is expected to grow its top line from $367 million in 2024 to almost $500 million by 2027, representing a compound annual growth rate (CAGR) of around 10%. While this growth rate may not be as high as some other tech stocks under $10, it still indicates a solid growth potential for Eventbrite. Additionally, Eventbrite's earnings per share (EPS) is forecasted to rebound sharply within the next decade, climbing to 63 cents in 2027 and surpassing $1 by 2029. This represents a significant earnings growth potential for the company.



One of the primary risks facing Eventbrite is its dependence on live events. As restrictions have eased, Eventbrite has witnessed a resurgence in in-person events, but there is still uncertainty about the pace and extent of recovery. To mitigate this risk, Eventbrite has focused on enhancing its in-person event offerings and expanding its presence in international markets. Additionally, the company has diversified its revenue streams by offering additional services, such as event promotion and marketing tools, and data analytics for event organizers.

Another risk for Eventbrite is the increasing pressure to adopt and maintain strong environmental, social, and governance (ESG) practices. As investors and customers become more conscious of ESG factors, companies that fail to meet these expectations may face reputational damage and potential loss of customers or investors. To address this risk, Eventbrite should focus on strengthening its ESG practices and integrating them into its business model.

In conclusion, Eventbrite Inc. (EB) presents an attractive investment opportunity for tech investors looking for a stock under $10. With its undervalued status, solid revenue and earnings growth potential, and adaptability in the changing event management landscape, Eventbrite is well-positioned for future growth. However, investors should be aware of the risks associated with Eventbrite's dependence on live events and the increasing pressure to adopt strong ESG practices. By addressing these risks and capitalizing on its strengths, Eventbrite can continue to thrive in the tech industry.