ASX tech stock Hub24 Ltd (ASX: HUB) started the week in the red, slipping 1% to $79.66.
That leaves the ASX tech stock down around 17% in 2026.
But while the sell-off may look ugly on the surface, the recent weakness appears driven more by macro fears and sector sentiment than company-specific problems.
And for long-term investors, that could create an interesting opportunity.
Caught in a sector sell-off
The broader technology sector has been under pressure as investors reassess valuations and try to understand how artificial intelligence (AI) could reshape competitive dynamics.
Growth shares have been hit particularly hard. That is not unusual during periods of uncertainty. Markets often sell first and ask questions later. Even high-quality ASX stocks can get caught in broad-based de-rating cycles.
Importantly, Hub24’s operational performance still looks strong. The ASX tech stock continues to benefit from structural growth as more financial advisers adopt its platform.
In its latest quarterly update, Hub24 reported net inflows of $4 billion. Total funds under administration climbed to $151.7 billion, up 22% year-on-year. Those are not the numbers of a business losing momentum.
Platform monogamy
The platform also continues to gain traction across the advice industry. More than 5,200 advisers now use Hub24, and industry trends appear to be working in its favour.
One of the biggest is platform consolidation. More advisers are moving toward “platform monogamy,” where they consolidate client assets onto a single provider rather than spreading them across multiple systems.
That trend could become a major tailwind for the ASX tech stock as advisers prioritise efficiency, integration, and scale.
Strong operational leverage
And there may be another powerful growth driver hiding beneath the surface. Platform businesses often benefit from strong operating leverage.
In simple terms, once fixed costs are covered, additional funds flowing onto the platform can generate higher incremental margins. That creates the potential for earnings growth to outpace revenue growth over time. That is one of the more interesting parts of the investment case right now.
The market may be focusing heavily on short-term sentiment, valuation concerns, and AI disruption fears. But internally, Hub24 could still be building a much stronger earnings engine as it scales.
AI uncertainty
The AI debate also deserves some perspective. Technology is evolving rapidly, and AI will almost certainly change parts of the financial services industry over time.
But Hub24 is not simply a basic software product. The ASX tech stock operates a deeply integrated ecosystem connecting advisers, clients, compliance, reporting, and investment administration.
Those ecosystems tend to be sticky. In fact, AI could potentially strengthen platforms like Hub24 rather than disrupt them. Automation and smarter tools may improve efficiency and client servicing without replacing the underlying platform infrastructure.
That distinction matters.
What do the experts think?
Analysts also appear increasingly optimistic despite the recent share price weakness.
According to TradingView data, most brokers currently rate Hub24 shares as a buy.
The average broker price target sits at $105.96, implying potential upside of roughly 33% from current levels. The most bullish target stands at $132.10, while the lowest target is $66.20.
Jarden is among the more positive brokers on the ASX fintech stock. It currently has a buy rating and a $115.30 price target on Hub24 shares.
The post Why this struggling ASX tech stock could surprise investors appeared first on The Motley Fool Australia.
Should you invest $1,000 in Hub24 right now?
Before you buy Hub24 shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Hub24 wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 20 Feb 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- 3 ASX shares that could be much bigger in 10 years
- 3 ASX mid-cap stocks that could be tomorrow’s big winners
- 3 high-quality ASX 200 shares for beginners to buy and hold
- 3 amazing ASX growth shares to buy in May with $20,000
- Generation Development Group completes $1.8bn client migration
Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.