In this article, we discuss 5 best gig economy stocks to buy now. If you want to read about some more gig economy stocks, go directly to 10 Best Gig Economy Stocks To Buy Now.
5. DoorDash, Inc. (NYSE:DASH)
Number of Hedge Fund Holders: 31
DoorDash, Inc. (NYSE:DASH) operates a logistics platform that connects merchants, consumers, and dashers in the United States and internationally. It is one of the best gig economy stocks to invest in. On September 27, the company announced that it had partnered with JP Morgan and Mastercard to roll out a credit card that will allow cardholders to earn rewards on and off the DoorDash platform. The firm has also recently partnered with Cobalt robotics to use AI robots to create smarter workplaces for employees.
On August 23, Wolfe Research analyst Deepak Mathivanan reiterated an Outperform rating on DoorDash, Inc. (NYSE:DASH) stock with a $110 price target, noting that the company’s significant profitability growth was masked by investments in long-term growth initiatives.
Among the hedge funds being tracked by Insider Monkey, Beijing-based investment firm Hillhouse Capital Management is a leading shareholder in DoorDash, Inc. (NYSE:DASH), with 4.7 million shares worth more than $301 million.
4. Lyft, Inc. (NASDAQ:LYFT)
Number of Hedge Fund Holders: 35
Lyft, Inc. (NASDAQ:LYFT) operates a peer-to-peer marketplace for on-demand ride sharing in the United States and Canada. It is one of the top gig economy stocks to invest in. On August 12, Tigress Financial analyst Ivan Feinseth maintained a Buy rating on Lyft, Inc. (NASDAQ:LYFT) stock and lowered the price target to $60 from $82, noting that the ongoing post-pandemic travel recovery and improving operating leverage give the firm a clearer path to profitability.
At the end of the second quarter of 2022, 35 hedge funds in the database of Insider Monkey held stakes worth $370 million in Lyft, Inc. (NASDAQ:LYFT), compared to 47 the preceding quarter worth $993.5 million.
In its Q2 2022 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Lyft, Inc. (NASDAQ:LYFT) was one of them. Here is what the fund said:
“Lyft, Inc. (NASDAQ:LYFT), the second-largest ride-hailing company in the US, connects riders and drivers over a mobile app. When we began our GardenSM campaign, our thesis was based on a likely strong ridership recovery post-pandemic, as well as management’s growing focus on increasing profitability after years of heavy investment. While the company has made some progress on margins as the economy has re-opened, driver shortages and fuel inflation have disrupted that progress. Given uncertainty around when these cost pressures could abate, we exited our position.”
3. Airbnb, Inc. (NASDAQ:ABNB)
Number of Hedge Fund Holders: 57
Airbnb, Inc. (NASDAQ:ABNB) operates a platform that enables hosts to offer stays and experiences to guests worldwide. It is one of the elite gig economy stocks to invest in. The shares of the firm have jumped in the past few months as international travel resumed following the pandemic lockdowns. On July 19, the shares were given a lift as Chinese premier Li Keqiang stated at the World Economic Forum that China will continue to pursue reopening policies with the continuation of international travel.
On September 23, Tigress Financial analyst Ivan Feinseth maintained a Buy rating on Airbnb, Inc. (NASDAQ:ABNB) stock and lowered the price target to $160 from $214, noting that the company’s strong brand equity and industry-leading status as the alternative lodging provider remained intact.
Among the hedge funds being tracked by Insider Monkey, New York-based Renaissance Technologies is a leading shareholder in Airbnb, Inc. (NASDAQ:ABNB), with 5.6 million shares worth more than $499 million.
In its Q2 2022 investor letter, Brick By Brick Capital, an asset management firm, highlighted a few stocks and Airbnb, Inc. (NASDAQ:ABNB) was one of them. Here is what the fund said:
“What is millennial tech?
It is a term I have coined to describe the type of companies I research. It is a disruptive technology that is changing the status quo of a given industry. For example, Airbnb (NASDAQ:ABNB) with the lodging industry. This definition casts a wide net in terms of what sectors I look at, but it is very specific in terms of what type of companies I look at. I also believe focusing on these companies gives me an inherent edge over Wall St. as they are often older and disconnected from what is truly innovative (…read more)
2. Block, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 72
Block, Inc. (NYSE:SQ) creates tools that enable sellers to accept card payments and provides reporting and analytics, as well as next-day settlement. It is one of the premier gig economy stocks to invest in. On August 8, investment advisory Barclays maintained an Overweight rating on Block, Inc. (NYSE:SQ) stock and lowered the price target to $130 from $150. Analyst Ramsey El-Assal issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm ARK Investment Management is a leading shareholder in Block, Inc. (NYSE:SQ), with 9.1 million shares worth more than $799 million.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Block, Inc. (NYSE:SQ) was one of them. Here is what the fund said:
“Block, Inc. (NYSE:SQ) provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to mixed quarterly results with more modest growth in the Seller business offsetting strength in Cash App. While integration of recently acquired Afterpay is progressing well and credit metrics remain healthy, the buy-now-pay-later business slowed due to greater competitive intensity. We continue to own the stock due to Block’s long runway for growth, sustainable competitive advantages, and unique corporate culture.”
Given this cash-generation power, we are naturally drawn to what we believe are strong and profitable financial institutions when the price is right. Presently, we believe the valuations of our financial holdings are not only reasonable, but extremely compelling, and our portfolio composition reflects this view. Representative financial holdings in the Fund includes Wells Fargo.”
1. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 129
Uber Technologies, Inc. (NYSE:UBER) develops and operates proprietary technology applications worldwide. It is one of the most prominent gig economy stocks to invest in. In late September, the firm announced that it had partnered with automaker Stellantis to focus on the French electric vehicle market. The companies said that they were working beside mobility brand Free2Move, which will enable Uber to transform 50% of its fleet in France to electric models.
On August 3, MKM Partners analyst Rohit Kulkarni maintained a Buy rating on Uber Technologies, Inc. (NYSE:UBER) stock and raised the price target to $40 from $32, noting that the company’s Q2 beat the expectations.
At the end of the second quarter of 2022, 129 hedge funds in the database of Insider Monkey held stakes worth $5.3 billion in Uber Technologies, Inc. (NYSE:UBER), compared to 144 in the preceding quarter worth $8.5 billion.
In its Q2 2022 investor letter, RiverPark Funds, an asset management firm, highlighted a few stocks and Uber Technologies, Inc. (NYSE:UBER) was one of them. Here is what the fund said:
“Uber Technologies, Inc. (NYSE:UBER) is a global technology platform that enables the transportation of people and products across cities and countries. The company’s three main business lines are 1) Mobility where the company is the number one or two player in the app-based personal transportation market in 10,000+ cities globally, 2) Delivery- (Uber Eats in the US) home delivery of prepared meals, grocery, liquor, and increasingly general retail products in seven of the top ten GDP markets globally, and 3) Freight- the largest global marketplace for end-to-end freight solutions including one million digitally connected truck drivers. In the company’s most recent quarter, it grew gross bookings 35% year over year, consummated transactions with 115 million unique customers, completed 1.7 billion trips a month, and all three divisions were adjusted EBITDA positive (…read more)
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