Looking back on gig economy stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Uber (NYSE:UBER) 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 mixed Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.6% below.
Luckily, gig economy stocks have performed well with share prices up 20.9% 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 $11.53 billion, up 13.8% year on year. This print fell short of analysts’ expectations by 0.5%. Overall, it was a mixed quarter for the company with strong growth in its users.
“We kicked off the year with yet another quarter of profitable growth at scale, with trips up 18% and even stronger user retention,” said Dara Khosrowshahi, CEO.
Interestingly, the stock is up 4.7% since reporting and currently trades at $89.90.
Is now the time to buy Uber? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $245.9 million, down 19.5% year on year, outperforming analysts’ expectations by 2.7%. The business had a strong quarter with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ number of service requests estimates.
Angi achieved the biggest analyst estimates beat among its peers. On a dimmer note, the company reported 3.36 million service requests, down 18.5% year on year. The market seems happy with the results as the stock is up 43.2% since reporting. It currently trades at $16.11.
Is now the time to buy Angi? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $3.03 billion, up 20.7% year on year, falling short of analysts’ expectations by 2.1%. It was a slower quarter as it posted EBITDA guidance for next quarter missing analysts’ expectations and number of orders in line with analysts’ estimates.
DoorDash delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. The company reported 732 million service requests, up 18.1% year on year. As expected, the stock is down 4.4% since the results and currently trades at $196.50.
Read our full analysis of DoorDash’s results here.
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 $192.7 million, flat year on year. This print topped analysts’ expectations by 2.2%. Zooming out, it was a mixed quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but a decline in its customers.
Upwork had the weakest full-year guidance update among its peers. The company reported 812,000 active customers, down 6.9% year on year. The stock is up 31.5% since reporting and currently trades at $17.50.
Read our full, actionable report on Upwork here, it’s free.
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 $1.45 billion, up 13.5% year on year. This number missed analysts’ expectations by 1.3%. All in all, it was a mixed quarter for the company.
The company reported 24.2 million users, up 10.5% year on year. The stock is up 29% since reporting and currently trades at $16.79.
Read our full, actionable report on Lyft 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.
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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