We recently compiled a list of the 11 Best Gig Economy Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Uber Technologies, Inc. (NYSE:UBER) stands against the other gig economy stocks.
During the COVID-19 pandemic, the gig economy stocks experienced one of the most profitable periods. As remote work opportunities increased, individuals and freelancers took advantage of the growing gig economy trend. However, post-pandemic the gig economy stocks came back to their normal trend. Still, the remote culture got a massive push that continues to grow and support most of the gig economy companies today.
Also Read: Jim Cramer Discusses These 11 Stocks & President Trump’s Sovereign Wealth Fund
According to the report from ResearchAndMarkets, the global market for freelance platforms is expected to reach $13.8 billion by 2030, growing from $4.8 billion in 2023. Whereas, research from Payoneer shows that the U.S. and the U.K. are two of the top destinations for freelancers, with diverse markets offering a range of opportunities for freelancers. Brazil, Pakistan, Ukraine, and the Philippines are also top locations with large and highly skilled workforces that support the global freelance market.
Asia remains one of the fast-growing freelance markets backed by India, Bangladesh, Pakistan, Ukraine, and the Philippines, with a large pool of talented workers and a burgeoning tech industry. Russia and Serbia are also experiencing a surge in freelancers, with more businesses looking for freelance contractors.
The North American market remains the highest-paid market for remote or freelance work. The average hourly rate in North America is around $44, while Western Europe follows next with an average per-hour rate of $31. Freelancers in Asia earn around $22 per hour on average, as per the report.
The growing freelance market and remote work are driving the gig economy and it can be a great time to invest in gig economy stocks. With that, let’s take a look at the 11 Best Gig Economy Stocks to Buy According to Hedge Funds.
Our Methodology
We shifted through ETFs and online rankings to compile a list of gig economy stocks. We have selected the 11 gig economy stocks to buy with the highest number of hedge fund holders, as of Q3 2024. The stocks are ranked in ascending order based on hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close up view of a hand holding a smartphone, using a ride sharing app.
Uber Technologies, Inc. (NYSE:UBER)
No. of Hedge Fund Holders:
Uber Technologies, Inc. (NYSE:UBER) offers ride-sharing and ride-hailing services through its platform. The company has the largest market share in its sector and massively supports the gig economy. The company maintains a strong position in the global and U.S. ride-hailing markets, sharing over 25% of the global market and a massive 76% share in the U.S. market. Uber’s massive network of over 171 million users and its large pool of drivers solidifies its position as a market leader.
On February 6, Cantor Fitzgerald analyst Reni Benjamin maintained an Overweight rating on UBER shares with a price target of $80. The analyst maintained this rating following the company’s strong results in Q4 2024. Uber Technologies, Inc. (NYSE:UBER) reported a significant rise in its Gross Bookings, which posted a year-over-year growth of 18% to $44.2 billion. The company’s Q4 2024 revenue reached $12 billion, exceeding the analyst estimate of $11.76 billion, driven by record demand in both the Mobility and Delivery segments. In addition to that, a remarkable increase of 122% year-over-year in FCF reflects Uber’s strong cash generation capabilities.
Overall UBER ranks 1st on our list of the best gig economy stocks to buy. While we acknowledge the potential of UBER as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UBER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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