UPWK - Upwork: Green Shoots Are Emerging

2024-03-12 12:17:24 ET

Summary

• Upwork stock has declined by ~10% in 2024, indicating that it may be time for a rebound.
• Upwork has shown profitable growth and has a cheap valuation compared to the broader market at ~2x revenue and ~16x P/E.
• Recent pricing actions have helped to drive revenue acceleration without hurting customer growth.
• Risks for Upwork include pricing limitations, competition, and the potential impact of AI on its core functions.
• Watch for Upwork to hit ~$11.50 before buying back in.

The market has been a story of haves and have-nots so far in 2024. AI plays have seen unprecedented momentum, alongside renewed optimism for cryptocurrencies. Meanwhile, non-tech stocks have lagged, and EV companies have also declined precipitously....

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