Upwork is a company that has taken over the internet in the last few years. Since the widespread notice of the Upwork freelance service, we have come to see Upwork as a major source for freelance opportunities. This is a stock that although isn’t so popular now, is still exceedingly tempting not to have them in your portfolio. Hello and welcome to my blog, Again, I am here to give you all the information I have accomplished and learned over the years. In this post, I will tell you about Upwork stock and why I am buying it now.
There is so much to master about the investment world and if you are interested in getting plenty of information about investment, stocks, money management, and more. You can check out my post ‘5 Recession-proof Stocks to Buy this Year 2020‘ for useful and essential information every investment novice must know. Show your love and support by commenting and liking on this post.
Also, remember that this is just my opinion and not law, so be sure to always do your due diligence before investing in any stock or any other investment choice. All information and values noted in this post are all accurate for the 7th of September 2020. Okay, let’s get back to the primary topic for today. A few days ago I dropped my August edition of the stocks I am buying and why I choose them. But this one wasn’t mentioned in it, because just recently the stock dropped in price and it was just too attractive for me not to grab it.
Why I like the Upwork stock and company
The Upwork stock has the ticker symbol UPWK. It is selling today at $13.95. This is a great price for such a stock, and in the past few days, the stock has been fluctuating a lot. Now let’s get to the Upwork story and why I am so interested in it. First, Upwork is a freelance platform that connects the freelancer to the contractor. It is like a middle man that offers a ground for a need and a solution. The platform is especially popular and successful.
Particularly because within the last few years, the company has created a seamless platform that caters to all services that can be rendered remotely. It also caters to payment tracking, which is great for both ends. The services are so many, and you can hire or get hired long term, short term, one-off, and be paid or pay per project or hour.
The second reason is the fact that the company has proven to be resilient in times of crisis. Here is what I mean; the pandemic encouraged the need for remote services. The world has seen how beneficial and easy it is to work remotely. Even with the pandemic, the company was able to do extremely well, because it offered a full out market place and workspace for everyone. This just shows that the company is a versatile and profitable one.
The third reason is their income statement for the last few years. In 2017 the company made a total revenue of $202,552 million. In 2018, they made $253,354, and in 2019 they made $303,562. So let’s be frank. The company is not profitable yet, they have grown well in their revenue, but their income has been low, they were running at a loss of $-4,000 in 2017, -19,000 in 2018, and -16,000 in 2019. The profit is low, so if you are looking for a con, this is it.
I believe that they can easily become profitable if they choose too. Let’s take a look at their future estimate. The report for this year’s estimates shows that the company should make somewhere around $350 million and for next year the company is looking at over $400 million. I believe that the company can beat this estimate. They have a great market, and I foresee a lot of growth and benefit in the next few years.
Although analysis has estimated that the company might be losing some money this year and in the coming one, but I don’t think so. On the fourth of this month, they released their 2nd quarter financial report which was very good I must say. The report showed that they had a 19% revenue growth amounting to $ 87.5 million, they also had their marketplace revenue growth amounting to $78.5 million, and finally, their marketplace take rate went up from 12.9% to 13.7%.
Let’s break down their balance sheet a bit; their total assets are at $488,38 million. Their total liabilities are at $218 million, their cash and cash equivalent is at $76 million, and their marketable security is at $69 million. At the same time, their current debt sits at $6.9 million. This just shows how well their balance sheet is, and if they have a great balance sheet, then the company has a great market and growth.
Another reason why I like the company is because of its CEO Hayden Brown; she is a woman that has the talent and the know-how needed to scale the company. And a major part of any successful company is in its management team. If the management team is okay, then the company has a bright future.
She has been with Upwork since 2011, and there was a bit of skepticism when she first became CEO in January of this year, but she seems to be doing well in proving her capability, and I just think there is a bright future ahead of the company.
I say there is a bright future because the world is at a stage where remote work is starting to get the notice it merits. Many companies and businesses are turning to it. Let’s be frank the Upwork market is scaling, and everyone knows that the future of the company can be huge.
Their competitors must be taken into account. The company has a few thriving competitions. Let’s take Fiverr, for example. Fiverr is a company that has also done well within the last few years; the stocks as of today are selling at $108.89.
Fiverr has a unique market of its own, and for now, I see Fiverr as a company that will play as the biggest competition for the Upwork Company. From what I can see through, Upwork and Fiverr have a lot of markets to dominate, but in the end, they can equally do well.
What does my future portfolio look like with the Upwork Stock?
As I said, Upwork has potential. And even if the competitors dethrone the company as a market leader, there is still plenty of potential in the company to grow. Now that you know what I know about the company, we came to the part where I share with you how I plan to proceed with its stocks. I am a long term investor, so of course, I have to weigh in the long term benefit and profitability before committing completely to any stock at all.
Currently, I own a sufficient amount of Upwork stocks. I believe the stock price will remain in the upcoming months under $30 per share, so I plan to keep purchasing. If the price goes beyond $30 I will reconsider my position. However, my purchases will be limited, since I don’t see any substantial growth in the profit. I like the company, but I like more companies with good income and good profit. So until that happens I won’t put all my money just on this company.
When speaking on stock and investment, there are just so many points to understand and take into consideration. But one thing I take to heart about any stock is the market demand and the diversity it holds. Upwork has ticked those boxes for me, and I am looking forward to seeing where it goes and being a part of the ship that is sailing.
What is your opinion about the Upwork stock and what is your take on having stock in the company? Let me know in the comment section. If you have not subscribed, then you will keep missing out on great content. Be certain to hit the like button if the video was helpful. Thanks for your time.
For further information, I would suggest reading the following books:
- The Five Rules Successful Stock Investing: Morningstar’s Guide to Building Wealth and Winning in the Market
- Investing Demystified: How to create the best investment portfolio whatever your risk level
- Investing QuickStart Guide: The Simplified Beginner’s Guide to Successfully Navigating the Stock Market, Growing Your Wealth & Creating a Secure Financial Future
- The Barefoot Investor: The Only Money Guide You’ll Ever Need
- Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week