I woke up this morning and got a notification from Upwork that one of my freelancers finished the job. I started my laptop, sipped my coffee and sent money to this freelancer. This was $65 but Upwork also takes a “payment processing fee” of $1.95 from me. On top of these $1.95, Upwork (NASDAQ:UPWK) will also take 20% from freelancer earnings. That is an additional $13.00 . So, just on this one small job, Upwork got almost $15.
This is a great business model, and I am not sure why Upwork cant seem to find a way to cut its costs and send the UPWK stock price higher. Just imagine how many freelancers signed up in the last 2 months with Upwork. I know two that did. Not sure how long they will stay on UPWK or if they will earn anything but you get the point.
Back to stock chart.
UPWK stock started its life at $20.99 and fell down all the way to $5.4 on April 3rd, 2020. From there it seemed as if UPWK is getting a 2nd chance. UPWK stock peaked on May 14th and from there a painful reverse commenced.
We are now at $11.64 and it looks like UPWK will settle around $10 for the time being. Hopefully. But hey, if Q2 results prove to be better than Q1 everything is possible, even a rally.
Based on 6 analyst rating UPWK is a “Moderate buy” and these are Analyst Target Prices:
HIGH TARGET 18.00
MEAN TARGET 12.33
LOW TARGET 10.00
52 WK HIGH 17.75
52 WK LOW 5.14
It remains for us to see if COVID-19 will completely save UPWK stock, but in my eyes it already saved it.