The gig economy has become a significant part of the modern workforce, offering individuals the flexibility to work on-demand through tech-enabled platforms. In the third quarter of this year, several gig economy stocks reported strong earnings results, indicating a positive outlook for the industry. Among these companies, DoorDash (NYSE:DASH) stood out with impressive revenue growth and exceeded expectations.
DoorDash, founded by Stanford students, operates an on-demand food delivery platform that has seen significant growth in recent years. In Q3, the company reported revenues of $2.71 billion, a 25% increase year-on-year, surpassing analysts’ expectations by 1.8%. This strong performance led to a 9.5% increase in the stock price, which currently trades at $170.
Upwork (NASDAQ:UPWK), formed through a merger of Elance and oDesk, is an online platform connecting businesses with independent professionals. The company reported revenues of $193.8 million, up 10.3% year-on-year, outperforming analysts’ expectations by 5.3%. Upwork also raised its full-year guidance, leading to a 2% increase in the stock price, which currently trades at $14.89.
On the other hand, ANGI (NASDAQ:ANGI), the largest online marketplace for home services in the US, reported a decline in revenues of 15.5% year-on-year. While the company beat analysts’ EBITDA estimates, it experienced a drop in service requests, leading to a 36.1% decrease in the stock price, which currently trades at $1.68.
Fiverr (NYSE:FVRR), a global freelance marketplace for digital services, reported revenues of $99.63 million, up 7.7% year-on-year, exceeding analysts’ expectations by 3.4%. The company also recorded a solid beat of analysts’ EBITDA estimates, resulting in an 11.8% increase in the stock price, which currently trades at $28.04.
Uber (NYSE:UBER), known for its global network of on-demand services, reported revenues of $11.19 billion, up 20.4% year-on-year, beating analysts’ expectations by 1.9%. Despite this positive performance, the stock price decreased by 7.8%, currently trading at $73.27.
Overall, the gig economy stocks analyzed in Q3 showed mixed results, with DoorDash and Upwork outperforming expectations, while ANGI faced challenges. Investors should carefully consider the financial performance and growth prospects of these companies before making investment decisions in the gig economy sector.
