The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how gig economy stocks fared in Q2, starting with Uber (NYSE: UBER).
The iPhone changed the world, ushering in the era of the “always-on” internet and “on-demand” services - anything someone could want is just a few taps away. Likewise, the gig economy sprang up in a similar fashion, with a proliferation of tech-enabled freelance labor marketplaces, which work hand and hand with many on demand services. Individuals can now work on demand too. What began with tech-enabled platforms that aggregated riders and drivers has expanded over the past decade to include food delivery, groceries, and now even a plumber or graphic designer are all just a few taps away.
The 6 gig economy stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.
Luckily, gig economy stocks have performed well with share prices up 20.1% on average since the latest earnings results.
Uber (NYSE: UBER)
Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE: UBER) operates a platform of on-demand services such as ride-hailing, food delivery, and freight.
Uber reported revenues of $12.65 billion, up 18.2% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a satisfactory quarter for the company with strong growth in its users.
“Our platform strategy is working, with record audience, frequency, and profitability across Mobility and Delivery,” said Dara Khosrowshahi, CEO.
Interestingly, the stock is up 8% since reporting and currently trades at $96.64.
Is now the time to buy Uber? Access our full analysis of the earnings results here, it’s free.
Best Q2: Angi (NASDAQ: ANGI)
Created by IAC’s mergers of Angie’s List and HomeAdvisor, ANGI (NASDAQ: ANGI) operates the largest online marketplace for home services in the US.
Angi reported revenues of $278.2 million, down 11.7% year on year, outperforming analysts’ expectations by 6.5%. The business had an exceptional quarter with an impressive beat of analysts’ service requests and EBITDA estimates.
Angi scored the biggest analyst estimates beat among its peers. On a dimmer note, the company reported 4.56 million service requests, down 7.6% year on year. The market seems content with the results as the stock is up 1.2% since reporting. It currently trades at $15.85.
Is now the time to buy Angi? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Fiverr (NYSE: FVRR)
Based in Tel Aviv, Fiverr (NYSE: FVRR) operates a fixed price global freelance marketplace for digital services.
Fiverr reported revenues of $108.6 million, up 14.8% year on year, exceeding analysts’ expectations by 0.9%. Still, it was a slower quarter as it posted a decline in its buyers.
Fiverr delivered the weakest full-year guidance update in the group. The company reported 3.43 million active buyers, down 10.9% year on year. As expected, the stock is down 7% since the results and currently trades at $23.25.
Read our full analysis of Fiverr’s results here.
DoorDash (NASDAQ: DASH)
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NYSE: DASH) operates an on-demand food delivery platform.
DoorDash reported revenues of $3.28 billion, up 24.9% year on year. This print surpassed analysts’ expectations by 3.8%. It was a strong quarter as it also put up strong growth in its requests and a decent beat of analysts’ EBITDA estimates.
DoorDash pulled off the fastest revenue growth among its peers. The company reported 761 million service requests, up 19.8% year on year. The stock is up 4.8% since reporting and currently trades at $270.45.
Read our full, actionable report on DoorDash here, it’s free.
Upwork (NASDAQ: UPWK)
Formed through the 2013 merger of Elance and oDesk, Upwork (NASDAQ: UPWK) is an online platform where businesses and independent professionals connect to get work done.
Upwork reported revenues of $194.9 million, flat year on year. This result beat analysts’ expectations by 3.9%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Upwork delivered the highest full-year guidance raise among its peers. The company reported 796,000 active customers, down 8.3% year on year. The stock is up 52.8% since reporting and currently trades at $18.35.
Read our full, actionable report on Upwork here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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