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Q3 Earnings Highs And Lows: Uber (NYSE:UBER) Vs The Rest Of The Gig Economy Stocks

StockStory - Thu Jan 11, 2:39AM CST

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Earnings results often give us a good indication of what direction a company will take in the months ahead. With Q3 now behind us, let’s have a look at 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 4 gig economy stocks we track reported a weak Q3; on average, revenues were in line with analyst consensus estimates while next quarter's revenue guidance was 1.8% below consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but gig economy stocks held their ground better than others, with the share prices up 27% on average since the previous earnings results.

Uber (NYSE:UBER)

Born out of a winter night thought: "What if you could request a ride from your phone?" Uber (NYSE: UBER) operates a global network of on demand services, most prominently ride hailing and food delivery, and freight.

Uber reported revenues of $9.29 billion, up 11.4% year on year, falling short of analyst expectations by 2.6%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and slow revenue growth.

“Our relentless focus on improving the product experience for both consumers and drivers continued to power profitable growth, with trip growth accelerating to 25%,” said Dara Khosrowshahi, CEO.

Uber Total Revenue

Uber delivered the weakest performance against analyst estimates of the whole group. The company reported 142 million users, up 14.5% year on year. The stock is up 25.2% since the results and currently trades at $60.29.

Is now the time to buy Uber? Access our full analysis of the earnings results here, it's free.

Best Q3: 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 $1.16 billion, up 9.8% year on year, outperforming analyst expectations by 1.3%. It was a mixed quarter for the company, with solid growth in its user base but slow revenue growth.

Lyft Total Revenue

The stock is up 26.6% since the results and currently trades at $13.57.

Is now the time to buy Lyft? Access our full analysis of the earnings results here, it's free.

Slowest Q3: 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 $371.8 million, down 25.3% year on year, falling short of analyst expectations by 1.7%. It was a weak quarter for the company, with a decline in its user base and slow revenue growth.

Angi had the slowest revenue growth in the group. The company reported 6.07 million service requests, down 22.1% year on year. The stock is up 51.5% since the results and currently trades at $2.5.

Read our full analysis of Angi's results here.

Fiverr (NYSE:FVRR)

Based in Tel Aviv, Fiverr (NYSE:FVRR) operates a fixed price global freelance marketplace for digital services.

Fiverr reported revenues of $92.53 million, up 12.1% year on year, surpassing analyst expectations by 1.5%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth.

Fiverr achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 11.9% since the results and currently trades at $26.95.

Read our full, actionable report on Fiverr here, it's free.

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The author has no position in any of the stocks mentioned

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