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Why Upwork's stock price is falling continuously ?

Community Guru
John B Member Since: Aug 20, 2015
11 of 22

Your business profile and skillsets indicate you have the potential to be a brilliant technical day trader. Perhaps a calling for you some day.

Community Guru
Steven E. L Member Since: May 5, 2015
12 of 22

Good job!

solved.pngSolved!

Community Guru
Rene K Member Since: Jul 10, 2014
13 of 22

Why is this guy copy/pasting random texts from the Internet?

 

 

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"Where darkness shines like dazzling light"   —William Ashbless
Active Member
Kostya B Member Since: Jun 24, 2015
14 of 22

"This guy" is looking for answers on the internet when nobody answers adequately to a question and attaching them to this thread.

Community Guru
Jennifer M Member Since: May 17, 2015
15 of 22

Kostya B wrote:

"This guy" is looking for answers on the internet when nobody answers adequately to a question and attaching them to this thread.


I think you're confusing "nobody can answer" with "nobody cares to answer."

Active Member
Kostya B Member Since: Jun 24, 2015
16 of 22

If nobody answers a question I'm forced to look for answers on the internet.
Answers like "...don't follow Upwork's stock price..." or "...be chill.." are not quite informative for me Smiley Happy

Community Guru
Martina P Member Since: Jul 11, 2018
17 of 22

Kostya B wrote:

If nobody answers a question I'm forced to look for answers on the internet.
Answers like "...don't follow Upwork's stock price..." or "...be chill.." are not quite informative for me Smiley Happy


Do not despair. Sometimes you just run into a bunch of gurus that take their guru-ness not as seriously as you would like. 

Active Member
Kostya B Member Since: Jun 24, 2015
18 of 22

Heart

Community Guru
John B Member Since: Aug 20, 2015
19 of 22

The reason Upwork's stock price is falling is:  earnings issues.   Upwork is varying between 1 cent per share to 5 cents per share in earnings, over the past two years, in a couple quarterlies and an annual.

 

The firm has not turned the corner and figured out how to make a profit.  The downstreams of this are known.

- It is why our fee was increased to 20% some time back

- It is why the CEO was invited to leave


Upwork has promoted internally for the new CEO position.  The new CEO is the former CMO and head of "product development".   This indicates Upwork's board is comfortable with the actual marketing and product deployment of the platform.   This is pure-play financial in their concerns.  Share holders are expecting to see share price increases, profit must increase given the maturity stage of this company.  Solve the profit problem.  Share price skyrockets.

 

Increase in early-in project fees to 25%?   Increase longer-term fees to 15%?
Reduce their primary cost center?  "IT"?
Reduce employee count, consolidate jobs, reduce staff?
Increase number of high-profit jobs (i.e. enterprise accounts, long-term projects)?

Take your pick.  If you are an investor in the stock all of those sound like an excellent idea.
John.

 

Community Guru
John B Member Since: Aug 20, 2015
20 of 22

Since I indicated I enjoy owning stock, and since it seems possible to probable someone will jump on me about stock investments in a stock price that is going down.  They are called "puts".  It was obvious to see with the creaking up of our fees, the massive investment program Upwork engaged in in FY2018/early-90, this firm was going to have profit problems.  Hence.  Puts.

You people live inside a company.  That is the best source of investor information on this planet.  All along, you were seeing Upwork struggling to meet all their objectives, struggling to consolidate, grow.  All of the problems you daily reference.   All along, the answer has been obvious.  Puts until the stock bottoms out, which it probably has in terms of relative potential gains from the put strategy.  Now it is simply a  time period to observe the new CEO, track quarterly earnings projects, match to actuals, and get a "feel" for how the company is clicking along."

All along, you were living inside a company.  The most valuable way to understand it and great news.  Since we are not employees the information we can see -- and experience.  Is free for us to use as we see fit on the investment side.

So we can bypass clinks and clunks associated with the joy of investing in this company. Put strategy for 1-1/2 years and the share price trajectory obviously indicates how pleasant that was.

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