Shares of Upwork, Inc. (NASDAQ:UPWK) were flying higher today though there was no company-specific news out on the online freelancing platform. Instead, shares of the recent IPO seemed to be gaining due to the rebound in the market, especially in tech stocks, as the Nasdaq rose more than 3% after crashing yesterday. Consequently, Upwork shares were up 15.1% as of 3:07 p.m. EDT.
Upwork stock lost 8.3% yesterday as the Nasdaq gave up more than 4%, so most of today's gains are just recovering yesterday's decline. Recent IPOs are often volatile, and Upwork has been no different as investors are struggling to make out the prospects for the company, whose business connects freelancers with employers.
Upwork priced its IPO at $15/share and surged out of the gate on Oct. 3, its first trading day, finishing up 41%. Since then, the stock has steadily fallen amid concerns about a broader pullback in the market. The stock was trading at a post-IPO low yesterday, which may have signaled a buying opportunity for bullish investors.
We'll learn more about Upwork and its future when the company makes its first earnings report as a public company on Nov. 7. Analyst estimates were not available, but Upwork will have a lot to prove as revenue growth has been modest for a tech IPO, and the company's loss has been widening. IPOs have a way of lifting visibility for companies like Upwork, which can help drive top-line growth temporarily. Looking ahead to the report, the stock is likely to make a big move one way or the other when the results come out.