Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Upwork Stock Rose Today

By Chris Neiger - Dec 8, 2020 at 4:28PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors' positive sentiment for this stock continues.

What happened

Shares of Upwork Inc. ( UPWK -4.78% ), a platform for freelancers, jumped today on no company-specific news. However, the stock may be rising following Upwork's strong November share-price gains.

The tech stock spiked by as much as 11.5% today and ended the trading day up 8.5%.

So what 

Upwork's shares skyrocketed in November after the company released third-quarter figures. Sales increased 24% year over year to $96.7 million, outpacing analysts' consensus estimate of $90.4 million. The company's non-GAAP earnings of $0.04 also beat Wall Street's estimate of a loss of about $0.06 per share.  

A bar chart and line graph on a light background.

Image source: Getty Images.

Following the company's strong third-quarter report, several analysts upgraded Upwork's stock and increased their price targets, prompting investors to continue pushing the stock higher.

Investors have been generally optimistic about stay-at-home stocks, as lockdowns and social distancing have kept many employees working from home. Upwork's platform allows companies to easily find freelancers, and investors may be banking on the idea that employers may look to gig workers to fill future employment needs.

With today's share price bump, Upwork's stock is up 234% year to date. 

Now what 

Investors likely have a reason to be optimistic about Upwork. Management estimates that fourth-quarter revenue will increase to $97 million and full-year sales will be $364 million, both at the midpoint of guidance. If the company reaches these estimates, they'll represent 20% and 21% growth, respectively.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Upwork Inc. Stock Quote
Upwork Inc.
UPWK
$35.45 (-4.78%) $-1.78

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
624%
 
S&P 500 Returns
140%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/06/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.