UPWK - Upwork: Time To Buy This Stock As It Gains Share (Rating Upgrade)

2024-06-14 09:34:12 ET

Summary

• Upwork achieved accelerating revenue growth in Q1, versus a sharp deceleration and loss of clients for rival Fiverr.
• Upwork's stock has declined 30% year to date, which is the result of fears over the impacts of AI.
• However, the company has amassed enterprise partnerships with the likes of Microsoft and SAP that will help it to remain relevant.
• The company trades at a cheap ~2x revenue multiple and a ~9x adjusted EBITDA multiple.

A big question to ask in the era of AI is: what will happen to the future of freelance work? For years, there has been a "gig economy" full of remote workers and digital nomads who supplied services such as graphic design, copyediting, and web design. As AI tools become better and more familiar for use, will these jobs exist anymore?...

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