I like Upwork. I always find a great freelancer when I need something designed. Besides designers there are many other niches covered in the freelancers pool of jobs offered at Upwork (NASDAQ:UPWK).
UPWK stock gained , after so many years, some really good traction during coronavirus crisis. On May 06 Upwork reported following numbers:
-Revenue grew 21% year-over-year to $83.2 million
-Marketplace revenue grew 24% year-over-year to $74.8 million
– Gross margin expanded three percentage points year-over-year to 72%
After these results were published share price climbed up for 8 days straight and reached $13.91 on May 14. From there it seems like UPWK started going in reverse.
Today UPWK opened lower again and lost almost 7% in the first hour on NASDAQ.
If Upwork was not in a work-from-home niche I would say that investors worry the market rally has gone too far and that talk of recovery is, well, just talk. But UPWK needs no recovery.
It just needs to have new freelancers to continue using their freelancing platform. And many of them will. On the other side, look at what Fiverr (NYSE:FVRR) is doing, their stock seem to be in much better shape, but in my eyes Upwork is far better site, compared to Fiverr. But financially speaking they are doing something wrong, especially knowing that their net loss doubled in Q1 2020 to $10.0 million,
Though consumers are still winding down their debt and the unemployment situation looks “murky at best,” there are still reasons to be positive about the market and the economy. Both UPWK and FVRR are long in my eyes.