The gig economy has revolutionized the way people work and access services, with tech-enabled platforms connecting freelancers and consumers in a seamless and efficient manner. In the third quarter of the year, several gig economy stocks reported their earnings, providing insights into their performance and growth compared to their peers in the industry.
Angi (NASDAQ: ANGI), created by IAC’s merger of Angie’s List and HomeAdvisor, operates the largest online marketplace for home services in the US. Despite reporting revenues of $296.7 million, which were in line with analysts’ expectations, the company experienced a decline in service requests, leading to a 15.5% year-on-year decrease in revenue. This performance was the weakest among its peers, with the stock down 25.1% since reporting.
On the other hand, Upwork (NASDAQ: UPWK), formed through the merger of Elance and oDesk, reported revenues of $193.8 million, exceeding analysts’ expectations by 5.3%. The company had a strong quarter, with EBITDA guidance for the next quarter surpassing analysts’ estimates. Upwork also scored the highest full-year guidance raise among its peers, with the stock up 6.8% since reporting.
Uber (NYSE: UBER), known for its global network of on-demand services, reported revenues of $11.19 billion, surpassing analysts’ expectations by 1.9%. Despite this positive performance, the stock is down 12.4% since the results were announced.
Lyft (NASDAQ: LYFT), founded as a ridesharing network in the US and Canada, reported revenues of $1.52 billion, exceeding analysts’ expectations by 5.7%. The company recorded the biggest analyst estimates beat and fastest revenue growth among its peers, with the stock up 13.6% since reporting.
Fiverr (NYSE: FVRR), based in Tel Aviv, operates a fixed-price global freelance marketplace for digital services. The company reported revenues of $99.63 million, topping analysts’ expectations by 3.4%. Despite having the weakest full-year guidance update among its peers, Fiverr’s stock is up 27% since reporting.
Overall, the gig economy stocks tracked in the third quarter reported a strong performance, with revenues beating analysts’ consensus estimates and next quarter revenue guidance exceeding expectations. While some companies experienced declines in certain metrics, others showed robust growth and outperformed their peers. Investors looking to capitalize on the gig economy’s continued expansion may find opportunities in these stocks, which have demonstrated resilience and adaptability in a rapidly evolving market landscape.
