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 Maplebear Inc. (NASDAQ:CART) 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 grocery store employee stocking shelves with fresh fruits and vegetables.
Maplebear Inc. (NASDAQ:CART)
No. of Hedge Fund Holders: 55
Maplebear Inc. (NASDAQ:CART), known as Instacart, offers gig workers with delivery work opportunities for its online grocery shopping services. The company’s operations span over 1,500 national, regional, and local retail banners and supports online shopping, delivery, and pickup services from more than 85,000 stores across North America.
On January 13, Morgan Stanley analyst Brian Nowak upgraded the price target on CART shares from $41 to $44 and kept an Equal Weight rating on the stock. Analysts are bullish on Maplebear Inc. (NASDAQ:CART) following strong Q3 2024 results, as the company surpassed the high end of guidance on both GTV and adjusted EBITDA. The company achieved a 39% year-over-year increase in adjusted EBITDA, showing strong profitability and operational efficiency.
Maplebear Inc. (NASDAQ:CART) is making advancements with notable investments in technology, including AI and deep retailer integrations. In addition to that, the company is also expanding its ads business, experiencing strong growth from emerging brands and creating new ad formats to attract demand.
Overall CART ranks 5th on our list of the best gig economy stocks to buy. While we acknowledge the potential of CART 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 CART but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
