Upwork Inc. (NASDAQ:UPWK) is one of the 10 Stocks That Will Collapse Because of AI. On April 9, Upwork Inc. (NASDAQ:UPWK) expanded its AI strategy by launching a ChatGPT-integrated app. The app allows businesses to create job posts, describe their project needs, and access Upwork’s talent network. After creating a job post, users are guided to the Upwork marketplace, where its AI agent, Uma, assists with building contracts, defining project scope, and managing workflow. The integration gives access to the company’s global network of over 18 million professionals across 130 work categories and 10,000 skills. It makes hiring faster and more streamlined for businesses of all sizes.
Peter Sanborn, chief business officer at Upwork Inc. (NASDAQ:UPWK), commented:
“Human expertise paired with AI is transforming work, and this integration brings the Upwork Marketplace directly into one of the tools millions of people use to get work started. You can now quickly progress from an idea in ChatGPT to hiring the right expert on Upwork in just a few steps, turning conversations into real work outcomes.”
While the AI integration is a positive step in improving workflow efficiency for Upwork Inc. (NASDAQ:UPWK), it also reflects a wider trend of businesses increasingly adopting AI internally. As companies rely more on AI tools rather than external hiring, demand for freelance platforms could decline, creating long-term revenue pressure.
Moreover, analyst sentiment is also negative, as Upwork Inc. (NASDAQ:UPWK) saw its price target cut by 8 Wall Street analysts, including UBS and Citizens JMP, a day after the launch of its app. UBS lowered its price target on the stock from $23 to $20, while Citizens JMP reduced its price target from $27 to $22. The others followed a similar pattern, and Wall Street seems convinced that Upwork’s AI plans will not arrest the steep decline that began with the weak Q1 outlook in the previous earnings report.
Upwork Inc. (NASDAQ:UPWK) offers workforce solutions and a platform that connects businesses with agencies, freelancers, fractional workers, and payrolled talent. It also provides the Upwork Marketplace. The company was incorporated in 1998 and is based in Palo Alto, California.
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