The gig economy has made a resurgence. Independent work was once the way of life before the Industrial Revolution of the 19th century ushered in the era of working for companies. In today's technology-driven world, it's easier than ever for independent workers to find freelance, project-based, or contractual jobs.
Each piece of work, or gig, is now typically found via a software platform. A slew of companies that are part of the gig economy have gone public recently. Among them is Upwork (NASDAQ: UPWK), an early player in the tech-fueled gig economy that connects employers and workers. But its early entrance hasn't helped Upwork's bottom line yet. The company lost $2 million in its recently reported second quarter.
Given a net loss of $0.02 per share in Q2, Upwork appears a risky investment on the surface. But three factors explain why now is a good time to invest in this company with a market cap at the time of this writing of $1.5 billion.