Earnings Mastery
  • Politics
  • Business
  • Investing
  • World
No Result
View All Result
  • Politics
  • Business
  • Investing
  • World
No Result
View All Result
Earnings Mastery
No Result
View All Result
Home Investing

Upwork stock price risky pattern points to a 30% crash

May 30, 2025
in Investing
Upwork stock price risky pattern points to a 30% crash
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

The Upwork stock price has pulled back in the past few days as investors assessed its growth trajectory. UPWK dropped to a low of $15.6 on Thursday, its lowest level since May 6, and 13% below its highest point this year. So, is this freelancer marketplace a good investment today?

Upwork’s business is doing well, but challenges remain

Upwork is one of the biggest players in the freelancer industry. It operates as a marketplace where companies post jobs and attract talent from around the world. 

Upwork makes money in several ways. It sells connects, which freelancers require when applying for jobs. It also has a subscription solution that gives freelancers more perks.

The company has introduced advertising, which lets freelancers boost their chances for getting clients. Other adverts are featured jobs and boosted profiles.

It also charges clients some money when they list their jobs to the marketplace. Also, the company takes a cut in cash processing fees.

Upwork’s business continues to gain traction among companies and freelancers in the past few years as the concept of remote work has gained steam. Many companies, especially small and medium-sized ones use it to attract talent and save money.

As a result, Upwork’s revenues have soared in the past few years, with the annual figure moving from $373 million in 2020 to $771 million in the last twelve months.

This revenue has increased as more companies and freelancers have joined the platform in the past few years. It has also jumped because of its regular price increases, which have continued to irk freelancers. 

Upwork’s business model has a fatal flaw that affects its revenue and profitability. In an ideal situation, Upwork should make money as long as a project goes on. It has implemented tools to ensure that this happens over time.

However, the reality is that many freelancers take the relationship away from Upwork and are paid directly. By doing this, Upwork misses the revenue that comes with that revenue stream.

Upwork has worked to prevent this from happening, but it is extremely difficult since freelancers and clients always communicate away from its platform. This factor explains why its revenue growth has stalled in the past few years.

UPWK revenue and profitability growth

The most recent results showed that Upwork’s business is doing relatively well, especially in terms of profitability. Its revenues rose by just 1% in the last quarter to $192.7 million, while its gross margin rose by 145 basis points to 78%.

Upwork’s adjusted EBITDA rose to $56 million, while the free cash flow rose to $30.8 million. These are strong numbers for a company that turned profitable a few years ago.

Analysts anticipate that the revenue slowdown will continue for a while. The average revenue estimate is $187.5 million, dowm by 2.8% from the same period last year. 

They expect the annual revenue to drop by 1.8% this year to $755 million, followed by a rebound to $800 million. 

Upwork stock price analysis

UPWK stock chart by TradingView

The daily chart shows that the UPWK share price remains under pressure this month. It initially jumped to over $17 after its recent earnings release and then pulled back to the current $15.60. 

The stock has formed a triple-top pattern at around $18 and the neckline at $11.15. A triple-top pattern is a sign that bulls are afraid of placing bids above the price. Therefore, there is a likelihood that the UPWK share price will continue falling as sellers target the neckline at $11.15

The post Upwork stock price risky pattern points to a 30% crash appeared first on Invezz

Previous Post

E.l.f. Beauty to acquire Hailey Bieber skin care brand Rhode in up to $1 billion deal

Next Post

What awaits Musk at Tesla, SpaceX, and xAI as he steps back from DOGE to re-focus on business

Next Post
What awaits Musk at Tesla, SpaceX, and xAI as he steps back from DOGE to re-focus on business

What awaits Musk at Tesla, SpaceX, and xAI as he steps back from DOGE to re-focus on business

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    Tesla stock craters as Trump vows to end Musk’s government subsidies

    June 6, 2025
    Asian markets open: most futures lower; Sensex to open flat as RBI policy decision looms

    Asian markets open: most futures lower; Sensex to open flat as RBI policy decision looms

    June 6, 2025
    Here’s why the Nifty 50 Index may surge after the RBI rate cut

    Here’s why the Nifty 50 Index may surge after the RBI rate cut

    June 6, 2025
    Circle stock price prediction: is CRCL a good buy today?

    Circle stock price prediction: is CRCL a good buy today?

    June 6, 2025
    Trump-Musk fallout risks SpaceX deals, Tesla’s standing, and Republican unity

    Trump-Musk fallout risks SpaceX deals, Tesla’s standing, and Republican unity

    June 6, 2025
    European markets open: Stoxx 600 flat ahead of US non-farm payrolls; trade tensions persist

    European markets open: Stoxx 600 flat ahead of US non-farm payrolls; trade tensions persist

    June 6, 2025

    Disclaimer: EarningsMastery.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Popular

    Warren Buffett stepping down: analysts assess what it means for Berkshire stock and investors

    Warren Buffett stepping down: analysts assess what it means for Berkshire stock and investors

    May 6, 2025

    Latest

    Tesla stock craters as Trump vows to end Musk’s government subsidies

    June 6, 2025
    Asian markets open: most futures lower; Sensex to open flat as RBI policy decision looms

    Asian markets open: most futures lower; Sensex to open flat as RBI policy decision looms

    June 6, 2025
    Here’s why the Nifty 50 Index may surge after the RBI rate cut

    Here’s why the Nifty 50 Index may surge after the RBI rate cut

    June 6, 2025
    • About us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 earningsmastery.com | All Rights Reserved

    No Result
    View All Result
    • Politics
    • Business
    • Investing
    • World

    Copyright © 2025 earningsmastery.com | All Rights Reserved