As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at gig economy stocks, starting with Lyft (NASDAQ:LYFT).
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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was 1.6% above.
In light of this news, share prices of the companies have held steady as they are up 1.2% on average since the latest earnings results.
Lyft (NASDAQ:LYFT)
Founded by Logan Green and John Zimmer as a long-distance intercity carpooling company Zimride, Lyft (NASDAQ: LYFT) operates a ridesharing network in the US and Canada.
Lyft reported revenues of $1.52 billion, up 31.5% year on year. This print exceeded analysts’ expectations by 5.7%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and solid growth in its users.
Lyft scored the biggest analyst estimates beat and fastest revenue growth of the whole group. The company reported 24.4 million users, up 8.9% year on year. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $14.26.
Is now the time to buy Lyft? Access our full analysis of the earnings results here, it’s free.
Best Q3: 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 $193.8 million, up 10.3% year on year, outperforming analysts’ expectations by 5.3%. The business had a very strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Upwork pulled off the highest full-year guidance raise among its peers. The company reported 855,000 gmv, up 2.3% year on year. The market seems happy with the results as the stock is up 13.2% since reporting. It currently trades at $16.52.
Is now the time to buy Upwork? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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 $296.7 million, down 15.5% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a solid beat of analysts’ EBITDA estimates but a decline in its requests.
Angi delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 4.49 million service requests, down 26% year on year. As expected, the stock is down 31.9% since the results and currently trades at $1.79.
Read our full analysis of Angi’s results here.
Uber (NYSE:UBER)
Born out of a winter night thought: "What if you could request a ride from your phone?" Uber (NYSE: UBER) operates a global network of on demand services, most prominently ride hailing and food delivery, and freight.
Uber reported revenues of $11.19 billion, up 20.4% year on year. This print beat analysts’ expectations by 1.9%. It was a satisfactory quarter as it also produced a decent beat of analysts’ EBITDA estimates.
The company reported 161 million users, up 13.4% year on year. The stock is down 24.1% since reporting and currently trades at $60.36.
Read our full, actionable report on Uber here, it’s free.
Fiverr (NYSE:FVRR)
Based in Tel Aviv, Fiverr (NYSE:FVRR) operates a fixed price global freelance marketplace for digital services.
Fiverr reported revenues of $99.63 million, up 7.7% year on year. This number topped analysts’ expectations by 3.4%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates.
Fiverr had the weakest full-year guidance update among its peers. The company reported 3.77 million active buyers, down 9.4% year on year. The stock is up 35.6% since reporting and currently trades at $34.
Read our full, actionable report on Fiverr here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September, a quarter in November) have kept 2024 stock markets frothy, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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