Core Insights - Upwork Inc. will report its financial results for Q3 2025 on November 3, 2025, after market close, followed by a Q&A conference call at 2:00 p.m. Pacific Time [1] - A live webcast of the call will be available on the Upwork Investor Relations website, with an audio replay accessible for one week and archived for approximately one year [2] Company Overview - Upwork Inc. connects businesses with global, AI-enabled talent across various contingent work types, including freelance, fractional, and payrolled [3] - The Upwork Marketplace provides on-demand access to highly skilled talent, while Lifted offers solutions for enterprise organizations to manage talent sourcing and payments [3] - The company has facilitated over $30 billion in total transactions since its founding, aiming to create opportunities in every era of work [4]

Core Insights - The article discusses the undervaluation of certain growth stocks within the gig economy, highlighting that investor sentiment is currently bearish due to perceived risks associated with artificial intelligence [1] Group 1 - The comparison focuses on identifying which of the gig economy platforms represents a better investment opportunity despite their undervaluation [1] - Investor concerns are primarily driven by the potential impact of artificial intelligence on these platforms, leading to a cautious outlook [1] - Stock prices referenced are from the afternoon of October 8, 2025, indicating a specific timeframe for the analysis [1]

Core Insights - The gig economy platform operates on an asset-lite business model [1] - There are investor concerns regarding Upwork potentially losing clients to artificial intelligence (AI) alternatives [1] Company Overview - Upwork is identified as a key player in the gig economy, leveraging an asset-lite approach to its business operations [1] Market Concerns - Investors are worried that the rise of AI could lead to a decrease in client retention for Upwork, as clients may opt for AI solutions instead of human freelancers [1]

Core Insights - The primary driver of market movement in 2025 is artificial intelligence (AI), with significant investments flowing into leading AI companies like Microsoft Corporation and Oracle Corporation [1]. Group 1: Market Trends - AI has emerged as the most compelling theme influencing stock market dynamics in 2025 [1]. - Investors are increasingly focused on top-performing AI narratives, particularly those associated with major technology firms [1]. Group 2: Analyst Background - The analyst, Gary Alexander, has extensive experience in both Wall Street technology coverage and Silicon Valley, providing insights into current industry trends [1]. - Alexander has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications, indicating a strong presence in the investment community [1].

Core Insights - 58% of businesses will prioritize AI proficiency and understanding when hiring freelancers in the next three months [1] - The freelance economy generates an estimated $1.5 trillion in annual earnings, highlighting its significance in the U.S. labor market [1][11] - Companies are increasingly hiring for uniquely human skills to ensure AI investments yield quality outcomes and business value [2][9] Hiring Trends - Demand for translation and localization services grew by 29% as businesses seek human oversight to address AI "workslop" [3][6] - Digital marketing contracts increased by 9% as companies adapt their strategies in the age of AI and generative search [4][6] - Project management roles among small and medium-sized businesses (SMBs) surged by 102% as firms prepare for annual planning [5][6] Skills Demand - The top 10 most in-demand AI-related skills include virtual assistance, content writing, and video editing, indicating a shift towards leveraging AI to enhance human roles rather than replace them [9][15] - Quality assurance testing grew by 9%, reflecting the need for human involvement in validating AI outputs [6] - 39% of businesses cite a lack of trust in AI's accuracy as a barrier to implementing AI solutions [6] Future Outlook - 53% of businesses anticipate hiring freelance digital marketers in the next three months, indicating a strong demand for marketing expertise [6] - 35% of businesses expect to hire freelance project managers, further emphasizing the growing importance of project management in an AI-enabled economy [6][7]

Core Insights - The article discusses the author's academic background in Law and Economics, emphasizing a focus on corporate wrongdoing and stock market analysis, particularly in US small to mid-cap stocks [1] Group 1: Investment Focus - The author expresses a longstanding interest in the stock market, particularly in value, growth, secular trends, and accounting practices [1] - The analysis aims to provide unique insights that go beyond previous writings on specific companies, utilizing academic research and financial modeling [1] Group 2: Analytical Approach - The author correlates financial statement numbers and key performance indicators (KPIs) with external variables to enhance the analysis [1] - The approach includes identifying secular trends and potential accounting irregularities to uncover investment opportunities [1]

PhD in Law and Economics, with a dissertation focusing on corporate wrongdoing. Longstanding interest in the stock-market, focusing primarily on US small to mid caps, both long and short.I will write about what peaks my interest: value/growth/secular trends/accounting shenanigans. I typically strive to add some color to the analysis that goes beyond what prior SA authors have written on a particular ticket, and if I cannot find that about a company, I will rarely write a piece. This typically means utilizin ...

Key insights: Wise has expanded its Austin office 200% to 90,000 square feet. What's at stake: The money transmission fintech is planning a dual listing in London and New York next year. Forward look: The company separately inked a new partnership with Upwork to add Wise Platform as an infrastructure provider. As it preps for its New York stock listing, payments fintech Wise is expanding its North American hub in Austin, Texas and increasing the reach of its payment infrastructure product, Wise Platfo ...

Company Overview - Fiverr's shares have reached two-month highs following an upgrade from BTI, which changed its rating from neutral to buy after the company announced job cuts and a shift towards AI integration [1][5] - The company operates in the online freelance marketplace sector, competing with platforms like Upwork and UDMI, which offer digital freelance and contract services [3][11] Financial Performance - Fiverr's stock has seen a slight increase, attributed to ongoing cost-cutting measures and AI integration, with BTI maintaining a buy rating and setting a target price of $31 [4][5] - Despite a 15% decline over the past three years, Fiverr has shown a 52-week gain of approximately 2% [6] - BTI expects a 30% growth in IBIDA for the remainder of this year and the beginning of next year, indicating potential for improved financial performance [6][9] Market Position and Competitiveness - Fiverr's profit margin is significantly lower than Upwork's, at around 4% compared to Upwork's 30%, highlighting a net income issue that may necessitate further cost-cutting [8][9] - The company's market capitalization is approximately $930 million, with a substantial cash position of $724 million, offset by $500 million in debt, making it attractive for value investors [9][10] Industry Trends - The freelance and contract service work trend remains strong post-pandemic, although the labor market is experiencing challenges with companies not hiring as aggressively [12] - The competitive landscape includes both publicly traded companies like Upwork and numerous smaller private firms, which may contribute to Fiverr's profitability struggles [11][14]

Group 1: Upwork Overview - Upwork shares increased by 8.1% to close at $19.6, with a notable volume of shares traded, reflecting a 27.7% gain over the past four weeks [1] - The company is experiencing growth due to AI-driven platform enhancements, strategic acquisitions, and increased demand for AI-related work, alongside growth in its Business Plus offering [1] Group 2: Earnings Expectations - Upwork is expected to report quarterly earnings of $0.25 per share, representing a year-over-year decline of 13.8%, with revenues projected at $192.13 million, down 0.9% from the previous year [2] - The consensus EPS estimate for Upwork has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Group 3: Industry Context - Upwork is part of the Zacks Internet - Services industry, where Zillow, another company in the same sector, has a consensus EPS estimate of $0.46, reflecting a year-over-year increase of 31.4% [3][4] - Zillow currently holds a Zacks Rank of 4 (Sell), contrasting with Upwork's Zacks Rank of 3 (Hold) [3][4]