Here's Why Upwork Stock Fell Today
Shares of work-management marketplace Upwork (NASDAQ: UPWK) fell on Thursday after the company reported financial results for the second quarter of 2022. To see the stock fall is a bit of a surprise to me, considering it beat expectations for the quarter and raised guidance for the year, and analysts set price targets far in excess of where the stock trades right now. However, as of 12:30 p.m. ET, Upwork stock was down 15% nonetheless.
In Q2, Upwork showed growth in almost every measurable metric. Revenue was up 26% year over year to $157 million. Gross profit margin expanded from 73% last year to 74% in Q2. Active clients were up, as was spending per active client. And finally, Upwork's take rate -- its cut of transaction volume -- increased to 15%, which is the highest it's been since the company went public in 2018.
Stifel analyst Scott Devitt raised his price target for Upwork stock today, whereas JMP Securities analyst Andrew Boone lowered his. However, their current price targets are $23 per share and $33 per share respectively, according to The Fly, which still represents strong upside for shares.
Source Fool.com
