What Happened?
Shares of digital outsourcing company TaskUs (NASDAQ: TASK) jumped 2.4% in the afternoon session after the company reported third-quarter 2025 financial results that surpassed Wall Street's expectations for both revenue and earnings.
The digital outsourcing provider posted revenue of $298.7 million, up 17% year on year, while its adjusted earnings per share of $0.42 also beat forecasts. In addition, the company's revenue guidance for the full year exceeded analysts' estimates. However, the results were somewhat mixed, as its revenue forecast for the upcoming fourth quarter fell slightly below expectations. Despite the soft near-term outlook, investors appeared to focus on the strong quarterly performance and improved full-year guidance, sending the shares higher.
After the initial pop the shares cooled down to $12.85, up 2.8% from previous close.
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What Is The Market Telling Us
TaskUs’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 24 days ago when the stock gained 5.5% on the news that Baird upgraded its rating on the stock to Outperform from Neutral and set a price target of $18.00. The upgrade came after the company's shares had declined approximately 20% since a founder-led take-private transaction failed to secure the necessary votes. Baird cited the company's growth rate as a key factor in its decision, describing TaskUs as "one of the fastest growing of the CX firms" with 22-24% year-over-year growth. The research firm also pointed to the stock's current valuation. Additionally, Baird suggested the possibility that the buyer group might return with an improved offer of $17-19 per share in the coming quarters if the stock price remained around its current levels.
TaskUs is down 23.9% since the beginning of the year, and at $12.85 per share, it is trading 32.1% below its 52-week high of $18.94 from November 2024. Investors who bought $1,000 worth of TaskUs’s shares at the IPO in June 2021 would now be looking at an investment worth $413.40.
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