Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at DoorDash (NYSE:DASH) and its peers.
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. On average, they are relatively unchanged since the latest earnings results.
DoorDash (NYSE: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 $2.71 billion, up 25% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates.
Interestingly, the stock is up 9.5% since reporting and currently trades at $170.
Read why we think that DoorDash is one of the best gig economy stocks, our full report is 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.
Upwork delivered the highest full-year guidance raise among its peers. The company reported 855,000 gmv, up 2.3% year on year. The market seems content with the results as the stock is up 2% since reporting. It currently trades at $14.89.
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 an impressive 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 36.1% since the results and currently trades at $1.68.
Read our full analysis of Angi’s results here.
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 result beat analysts’ expectations by 3.4%. It was a very strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates.
The company reported 3.77 million active buyers, down 9.4% year on year. The stock is up 11.8% since reporting and currently trades at $28.04.
Read our full, actionable report on Fiverr here, it’s free.
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 result beat analysts’ expectations by 1.9%. It was a satisfactory quarter as it also logged a decent beat of analysts’ EBITDA estimates.
The company reported 161 million users, up 13.4% year on year. The stock is down 7.8% since reporting and currently trades at $73.27.
Read our full, actionable report on Uber here, it’s free.
Market Update
In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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