Bill. This is perhaps the net that analysts understand that cents-per-share earnings. The company got energetic in its decision of shares declared at IPO and investors were expecting a closer match to earnings and share count. I think the analysts understand that perfectly! We do!
Royce said it beautifully. Market "monopoly". I love that word when I am on the monopoly side of the house two different ways. Bodes well for the future in a couple of ways.
I hope you are doing okay!
I, too, understand cents-per-share and relationship to market cap/value. odesk and elance were struggling for a long while before Upwork was spawned. When cents-per-share remains below zero with no credible plan to fix that, the stock is not going to rise. There is no guidance for investors, and I do not see any remarkable intellectual capital to entice buyers and/or providers.
Upwork is the best of breed without doubt. Its business model might succeed at some point. The most successful online freelancing job brokering board in the US was ProSavvy, which had a very different business and operations model. It charged freelancers a significant sum to join, which was the foundation of its revenue and profit. Beyond that it had a high minimum for jobs, the lowest being "$5,000 or below." Its operations model eschewed algorithms and included human intervention stating with the job posting. It was profitable.
It is good to hope the Upwork business model succeeds. Otherwise, we are out on Fiver or whatever low-end platforms support projects du-jour. Or, go back to how I started my freelancer career, before I figured out oDesk and Elance existed.
I found a way to log into Craigslists across seven major cities. And looked in their business services want-ads for Upwork style projects.
That strategy was actually surprisingly effective "back in the day" (circa 2010 to 2012). Along with me, hiring clients had not figured out oDesk and Elance were the places to be. Fortunately, our platforms caught up to Craigslist (lol...) as the most viable place in which to seek, win, and darn sure charge for work.
Monopolies succeed. And we operate inside a living, breathing monopoly that obviously is not so very easy what-so-ever to replicate.
I predict massive success for the firm, the contractors who figure out how to operate within its environments successfully, and long-term, buy-and-hold investors. The point, to note. Is to make more money on firm ownership than one could ever make working for it.
Because the stock market is falling altogether.
There's a video on youtube, but I don't know if I can link to it, or say on which channel it is. It is on a "conspiracy' channel, but the speaker is a financial expert.
The bottom line is that we will all be enslaved because of the virus, staying at home, and the billions being pumped into the stock market every day, forever. But do your own research and draw your own conclusions, because I don't really understand finances. I only "understand" printed paper money.