The gig economy market has witnessed an impressive surge in recent years, driven by the sweeping wave of digitization reshaping businesses and services. As technology bridges gaps like never before, the demand for flexible, on-demand labor skyrockets, offering businesses the agility to adapt swiftly to market needs.

Amid this backdrop, investors could consider buying fundamentally stable gig economy stocks DoorDash, Inc. (DASH), Upwork Inc. (UPWK) and Fiverr International Ltd. (FVRR). These companies are actively transforming the workforce and are well-positioned to capitalize on the growth of the gig economy market.

The gig economy is not just a trend but a revolution redefining how people work. In this dynamic ecosystem, independent contractors and freelancers take center stage, filling temporary and part-time roles. From ride-hailing apps to food delivery services, this innovative model drives productivity and employment growth globally.

In 2024 alone, the gig economy reached a staggering market size of $556.7 billion. By 2032, this number is projected to skyrocket to $1.85 trillion. More than 59 million American citizens, 36% of the U.S. workforce, have embraced freelance work, reshaping the employment landscape and breaking conventional job norms.

This exponential growth stems from multiple factors. The rise of delivery applications now connects gig workers with countless homes for food and product deliveries. Flexible working hours appeal to those juggling responsibilities while rising living costs push many to seek income beyond traditional 9-to-5 employment.

According to a report by Business Research Insights, the global gig economy market size is expected to reach $1.85 trillion in 2032, growing at a CAGR of 16.2%.

Now, let us dive deep into the fundamentals of three gig economy stocks, starting with #3.

Stock #3: DoorDash, Inc. (DASH)

DASH operates a commerce platform connecting merchants, consumers, and independent contractors. The company operates DoorDash Marketplace and Wolt Marketplace, which offer services like customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support.

On November 26, 2024, DASH Canada and Walmart Inc. (WMT) Canada announced a collaboration to provide Canadians across the country with on-demand access to grocery and general merchandise essentials. The collaboration aims to deliver affordable and convenient shopping options through the DASH app and ensure stable user growth for the company.

On October 30, 2024, DASH announced a partnership with Lyft (LYFT) to offer monthly rideshare benefits for DashPass members at no additional cost and a free trial of DashPass for eligible LYFT riders. The partnership could drive customer growth for both companies and bring in new revenue streams through free trial offerings.

For the fiscal 2024 third quarter that ended September 30, DASH’s revenue increased 25% year-over-year to $2.71 billion. Its income from operations came in at $107 million, compared to a loss of $108 million in the previous year’s quarter.

Additionally, net income attributable to DASH was reported to be $162 million compared to a net loss of $73 million in the previous year’s quarter. Moreover, net income per share attributable to DASH Class A and Class B common stockholders amounted to $0.38 compared to a loss per share of $0.19 in the previous year’s quarter.

Analysts expect DASH’s revenue and EPS for the fiscal fourth quarter that ended December 2024 to increase 23.3% and 122.4% year-over-year to $2.84 billion and $0.94, respectively. The company topped the consensus revenue estimates in all four trailing quarters, which is impressive.

Shares of DASH have surged 58.8% over the past six months and 76.9% over the past year to close the last trading session at $170.65.

DASH POWR Ratings reflect its sound fundamentals. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

DASH has an A grade for Growth and a B for Sentiment and Quality. Within the B-rated Internet – Services industry, DASH is ranked #8 out of 24 stocks.

In addition to the POWR Rating highlighted above, you can check DASH’s ratings for Stability, Momentum, and Value here.

Stock #2: Upwork Inc. (UPWK)

UPWK operates a work marketplace that connects businesses with various independent professionals and agencies. Its work marketplace provides access to talent with various skills across a range of categories like administrative support, sales and marketing, design and creative, customer service, and more.

On October 16, 2024, UPWK enhanced Uma’s AI capabilities, boosting business-freelancer collaboration and productivity. The innovation strengthens UPWK’s competitive edge, attracting more users and driving growth. By delivering superior outcomes tailored to diverse needs, the company is positioned as a leader in the AI revolution.

On August 1, 2024, UPWK partnered with Beeline, a top technology provider, to streamline hiring and centralize contingent workforce management. The collaboration offers enterprises an end-to-end solution to source, hire, and engage highly skilled independent professionals, enhancing efficiency and positioning UPWK as a key player in workforce innovation.

For the fiscal 2024 third quarter that ended September 30, UPWK’s total revenue increased 10.3% year-over-year to $193.78 million. Its non-GAAP income from operations increased 35.6% from the year-ago value to $39.96 million.

Furthermore, the company’s non-GAAP net income and non-GAAP EPS rose 35.6% and 38.1% from the prior year’s quarter to $39.16 million and $0.29, respectively.

Street expects UPWK’s revenue and EPS for the fiscal year that ended December 2024 to increase 10.1% and 95.8% year-over-year to $758.89 million and $1.02, respectively. Additionally, the company surpassed the consensus revenue and EPS estimates in all four trailing quarters, which is noteworthy.

UPWK’s shares have surged 59.8% over the past three months to close the last trading session at $16.41.

UPWK’s robust prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.

UPWK has a B grade for Growth, Value, and Quality. Within the Internet – Services industry, it is ranked #3 out of 24 stocks.

To access UPWK’s Momentum, Stability, and Sentiment ratings, click here.

Stock #1: Fiverr International Ltd. (FVRR)

Headquartered in Tel Aviv, Israel, FVRR operates an online marketplace that enables sellers to sell their services and buyers to buy them. Its platform offers its services in various categories, including graphic and design, digital marketing, writing and translation, video and animation, music and audio, programming and tech, and more.

On December 12, 2024, FVRR released Dynamic Matching, a new AI-assisted matching tool that transforms how businesses can find and hire freelancers. Simplifying the hiring process supports user growth and strengthens FVRR’s position as a leader in freelance marketplace innovation.

For the fiscal third quarter that ended September 30, 2024, FVRR’s revenue increased 7.7% year-over-year to $99.63 million. Its non-GAAP gross profit rose 6.2% from the year-ago value to $83.68 million.

Additionally, the company’s non-GAAP net income and non-GAAP net income per share attributable to ordinary shareholders grew 8.7% and 16.9% from the prior year’s quarter to $24.61 million and $0.69, respectively.

The consensus revenue and EPS estimates of $101.39 million and $0.68 for the fiscal fourth quarter that ended December 2024 exhibit a year-over-year rise of 10.8% and 21.4%, respectively. Moreover, the company surpassed the consensus revenue estimates in each of the trailing four quarters.

FVRR’s shares have surged 30.8% over the past three months and 50.5% over the past six months to close the last trading session at $32.04.

FVRR’s robust fundamentals are mirrored in its POWR Ratings. The stock has an overall rating of B, translating to a Buy in our proprietary rating system.

FVRR has a B grade for Growth, Value, and Quality. Within the Internet industry, it is ranked #9 out of 84 stocks.

Click here to access FVRR’s ratings for Stability, Momentum, and Sentiment.

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DASH shares were unchanged in premarket trading Friday. Year-to-date, DASH has gained 1.73%, versus a -0.25% rise in the benchmark S&P 500 index during the same period.

About the Author: Aanchal Sugandh

Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program. She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns. More...

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