What Could Go Right and Wrong for Upwork and the Gig Economy During the Coronavirus Crisis

Things haven't panned out for Upwork (NASDAQ: UPWK) stock thus far in its short journey as a public company. Even as the freelance employee hiring platform grew revenue 19% in 2019, shares have tumbled nearly 75% from their all-time high. Granted, the market needed to reevaluate the business based on current expectations, and the coronavirus market sell-off hasn't helped matters. Nevertheless, at this point, shares look like a bargain going for just 2.3 times sales, especially if revenue does in fact grow at least 13% in 2020, as management has forecasted.

But in light of recent events, there's a good chance that there are more speed bumps ahead. Nevertheless, the longer-term prospects for Upwork and other gig economy companies look promising in a post-pandemic digital world.

It needs to be understood that with the lockdown to halt the spread of COVID-19, there will be economic pain. According to the Department of Labor, initial claims for unemployment insurance surged by over three million week over week to reach 3.28 million on March 21, 2020. That's the biggest weekly increase ever, and it's likely to continue to grow in the weeks ahead due to social distancing and shelter-in-place orders.

Source Fool.com