I Just Put $8000 in this $13 Stock!
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Today I share with you a stock I just put $8,000 in today! This stock was not featured in the 3 stocks I’m buying August 2020 edition. LMK in the comments if you think Upwork stock should be in the stocks to buy now category or just stocks to watch.
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Well holy joke is is saying no smokers wait. That’s not right. That’s not right. Well, Holy smoke is the same no joke this I just bought over $8,000 worth of a stock here today guys that I am very happy to tell you about thank you for joining me here on this video and spending a bit of time with me are three things I want to accomplish in this video here today.
One is I’m gonna tell you about what the stock is I bought over $8,000 worth of here today. The second thing is I want to tell you why I bought this stock. So basically giving you my full bullish thesis on this particular stock.
I don’t think I’ve ever given my full bullish thesis on this particular stock we’re talking about here today. So I’m going to give you my full both these around this which you can learn a lot from not just in regards to this stock, but the kind of the the framework, I look into these stocks and kind of the things I think about in those sorts of things.
So I hope you guys can also learn a lot from this video. And the third thing I want to accomplish in today’s video is I’m gonna tell you, if I’m going to buy more of the stock, what prices I’m looking at to potentially buy more of the stock and exactly how much money I’m thinking about potentially putting in the stock. Okay, now I came out with three stocks.
I’m buying the August edition that was just you know, five days ago, and this was actually not one of the stocks mentioned, this stock has just dropped recently, quite substantially. And that’s what made me also be like, Okay, I’m gonna start, I’m gonna start buying the stock once again, because basically, the stock is very, very attractive.
So it’s not a stock that was even mentioned in that particular video. It was a good day in the market. So congrats to anybody in the market today. I mean, it was, you know, a fair day out there, just put that way, we’re up over 10k just in the public County alone today, which means if we ended up you know.
Everything probably was a 30k to let’s say 50k day or so out there for me here today. So, you know, congrats to you guys. And hope you guys enjoyed. As always, if you don’t mind smash that thumbs up button that helps out the YouTube channel immensely. So I do appreciate that.
And also if you’re looking to scale your stock market portfolio, somebody that has more than $10,000 already invest in the market or you’re thinking about investing five figures plus in the stock market this year.
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Okay, so first thing up here what is this stock I bought here today? Well this stock is called up work okay ticker symbol up Wk well over $8,000 worth this stock here today with the exact amount being $8,006.88. Okay, about 575 shares $13.92 is what the average price I paid for those shares here today.
Okay, the stock was down huge again today. It was down big yesterday, it was down big again here today. And that’s what made me say okay, I’m going to go ahead and grab some of these shares, okay, was down another 7.75% here today? And you know, why is it going up after hours?
I haven’t even come out with my video yet. Okay, that’s just wrong. Makes me think like maybe like an investment fund or something is like hacked my iPad and it’s like, as soon as I start prepping a video, they’re like in the iPad, like, Oh, he’s making an upward video.
Let’s buy it. And after hours, like what the heck, man, the head of Apple security is watching this video, please contact me. Okay, I will hire you away from Apple. I’ll pay you more than they’re paying you that kind of cheap. They’re hurt. Okay.
No, just kidding. Okay. But in all seriousness, maybe there’s somebody at fidelity that’s leaking information. I don’t know what’s going on, but it’s a little suspicious. Okay. So let’s get into the why I am buying the stock why I’m so bullish on then we’ll get into the, you know, will I buy more and how much more Okay.
Ao if you don’t know, Upwork, essentially, is a freelancer type company. Okay. So you know, if you are a business and you’re looking for a worker to do something, whether it’s you know, longer term work, short term work, one off jobs, whatever the situation is, you know, hourly pay, you can actually do it straight through Upwork.
And they can do everything, not just about the talent acquisition, but actually the payroll, everything. So they’ve really made it into a very seamless product over the last couple years, that’s actually much stickier than it was before. Let’s put it that way.
Okay. I mean, let’s say I needed like an email copywriter, I can go right on Upwork. And look at all these different email copywriters, how much they charge per hour or per job, I can look at their job success rate, where they’re located, and look at information about them reviews on them, all those sorts of things, which is immensely.
I mean, immensely helpful. If you’re looking for somebody to do a good job, and you don’t want to hire somebody as a full time worker, or even if you’re thinking about hiring them as a full time worker, might even be potentially a good place to look through Upwork rather than just you know, looking.
You know, basically in your town or city because you might be able to get a lot better work, you know, somewhere, you’re remotely let’s put it that way versus your town or city you live in. Okay, so I was looking for a video editor, same exact thing, go you know, all through these different video editors.
What if I was looking for an attorney or somebody in law, I could talk with, you know, business lawyer or something like that. I can go right on Upwork and go ahead and book a job, no problem. And there’s all those different categories there.
I mean, most jobs you could possibly, you know, think out there That could be done remotely. It’s covered on Upwork. And you can find those type that type of talent directly on Upwork. And they built a very successful business off this that is still growing and growing.
And we’re going to look at the numbers. This is actually a very nice growth stock. Very nice, gross K. And Ronnie Rona, we keep in mind this Ronnie Ronnie situation. This is high. This is kind of like a perfect scenario for a company like Upwork In my opinion, because Roni Rona has made remote work, freelance work more normal than it ever has before.
Okay, a lot of companies, especially a lot of big companies in when it comes to Upwork, they’re not only focused on small businesses and midsize businesses, they actually do a lot of work with big businesses.
But a lot of the philosophy around you know midsize businesses and big businesses was we they have to be in person doing their job at our corporate campus. And that’s the way it has to be. But this Ronnie Rona situation has made a ton of these companies realize, oh my gosh, we might actually be better run. Not all in one big huge office or something like that, which is quite interesting.
Okay, that’s actually amazingly amazingly interesting that, you know, businesses could be actually better off by remote work, freelance work and those sorts of things, then what was traditionally thought and tons and I’ve heard it from a ton of big businesses that are setting basically, man, we don’t even know if we’ll go back to our big office again.
Okay, literally, okay. That’s, that’s incredible. When you really think about a lot of these these big companies like, ah, we don’t even need a corporate campus anymore. We can just all work from home or work from remote, you know, locations, things like that. It’s pretty amazing.
So this is a great thing for upward. Okay, now, what the heck’s going on with the stock price, now it’s up over 2% after hours, okay. Something’s going on. Okay, something’s going on in my iPad income statement wise, this income statement over the past several years, from 200 mil, just over $200 million dollars in revenue back in 17.
To this past year, they do over 300 million. Very nice growth, as I told you guys is a very nice growth company. And it should continue to grow very nicely for years and years and years to go in the future. Now, it’s an unprofitable company right now.
Okay, they’ve been so focused on growth, that it really the focus isn’t on profitability right now. But what I will say is peak losses came in 2018. And they’re getting better and better and better now. So that is good news. But the company is unprofitable.
So if you’re thinking about, you know, a con to this business or negative thing, it’s on profitability right now. But also remember, they I mean, if they, if they do, you know, focus so much on growth, they could easily make this business profitable tomorrow, in my opinion, okay, based upon the numbers I’ve ran.
And if we look at what this company is expected to do this year, in next year, okay, this year, they expect to do about $350 million of revenue. Don’t be surprised if they actually beat that number. Don’t be surprised if they actually, you know, grow revenue better than that.
I think that numbers a little bit conservative there. Same thing with next year’s number, they haven’t basically doing analysts have them doing about $402 million of revenue next year. Don’t be surprised if that numbers a little conservative as well, I could definitely picture them doing anywhere from 415 mil to maybe 435 mil, next year on top line, double digit grower.
I mean, regardless, even what those numbers analysts have, which I think are a little conservative, still a very nice double digit growing company. And I think they’re going to grow double digits, meaning they’re going to grow 10% plus revenues, year after year after year, for you know, as far as I can see this, put it that way, at least the next five to 10 years, somewhere in there.
Okay. And then we’ll see what happens after that. But as far as I can see, there should be a company that continues to grow very nicely. That’s one of the reasons I love this stock, big potential here. Okay.
Now, in terms of next year, analysts actually have this company losing money on the bottom line. So I actually have the company doing a net loss of about 15 cents a share. I think that’s going to be wrong.
I actually think this company is going to be profitable in 2021. Yes, you heard me, right. I think this company up work will be profitable in 2021, you know, is a lot of moving parts here. But I’m looking at the what I expect the company to do revenue wise, versus operating expenses, and those sorts of things.
I think the company might eke out a small profit in 2021. I’m not expecting some gargantuan profit of, you know, 50 million or $100 million on the bottom line? Absolutely not. But I actually think this company will be net positive bottom line in 2021.
Which if you’re thinking about the type of things that really change stock prices, if you can be a company that you’re expected to lose money, and all sudden you start making money on the bottom line, it’s a game changer. Same thing when it comes to top line, you know, I mean, imagine a company as beaten down and everybody expects their revenue continue to go down.
And then all of a sudden, they have an acceleration of revenue growth, and all sudden, you’re like, Whoa, that’s a game changer for stock price. I’ve seen time and time again. Same thing with everybody’s expecting loss, which means on average, expected losses, and you come in Oh, yeah, we’re actually going to be profitable this year.
You actually post those numbers. everybody’s like, Whoa, now we’re talking Okay. Now, this company just reported their second quarter 2020 financial results about 48 hours ago, okay. The numbers are strong, and I think the stock sold off for the wrong reasons. Okay.
The numbers were very strong here. revenue growth, beat any Expectations out there for analysts expectations company expectations around guidance everything revenue grew 19% year over year to 87.5. Mills exceeded guidance marketplace revenue grew 19% year over year, marketplace take rate improved from 12.9% to 13.7%. year over year.
Phenomenal numbers across the board there for upward Okay, as far as what Hayden brown the CEO have to say. She said we had a strong second quarter supporting the growth set of customers who are increasingly eager to leverage our own demand remote talent solution.
We are capitalized on the global shift toward remote work in the widespread need for flexible talent solutions welcoming a surge of new customers, we remain laser focused on executing our vision of being the number one flexible talent solution in the world which is more critical than ever, as companies need help managing their expanding remote workforces Okay, Hayden brown CEO.
I like her Okay, I think she’s on the right track. I think she’s gonna be a good CEO for this company. She just took over the role in January of this year. She’s worked at Upwork since 2011. I’ve watched several interviews with their conference you know, listen a couple of conference calls now.
And I think she’s I think she’s going to be a good CEO for this company. I think right now Wall Street’s unsure about her and they’re trying to you know, see you know, Wall Street usually when it comes to somebody that’s never been CEO before and become CEO, they usually walk into it a little skeptical and I think that’s fine walking skeptically.
I love that, you know, I’d much rather have that type of situation where the stocks beat down and Wall Street walks into a little skeptical rather than you know, it’s just all you know, positivity and the stock price is sky high or something like that for a new CEO, but I have a lot of faith that she will do a very good job leading this company overall into the future okay.
In something else here. Okay. The upward CEO back, you know, a couple months ago basically went on record and said that she expects the Rona will lead to more freelance work. Hayden brown believes the dramatic shift to remote work will accelerate the conversation around how companies build their workforce.
I’m 100% on on this boat, you know, wave. I think this is going to be huge, I think the Rona, if you’re talking about a business that is perfectly positioned to capitalize on, you know, results that have happened from Rona you know, remote work, freelance work, these things aren’t going away. They’re going to become bigger than ever now, because of everything that’s happened here.
And transpire with Ronnie Rona, in Wall Street sleeping Wall Street is sleeping on this stock. I’m just amazed that wall street is sleeping on the stock. I think they’re making a big mistake by sleeping on the stock.
I mean, these are type of stocks you know, Wall Street is so caught up in right now with the whole Roni run a situation companies that are benefiting right Shopify, clearly one of those stocks. Okay, zoom.
clearly one of those stocks has benefited big time from Roni, Rona. Obviously slack technologies, a lot of those type of companies are the ones that wall street is focused on right now, in terms of companies that are just have the hype behind them and are, you know, basically seeing a net positive thing for their business happened basically on the back that Roni Rona has happened.
Okay. And honestly, I think they just forgot about up work. And I think it’s a big, big mistake. I mean, there’s companies sitting at a $1.6 billion market cap or so. And I just think, you know, while she’s making a big mistake here, by just kind of sleeping on this one, and not realizing all.
You know, this company is perfectly positioned for the next wave of kind of growth in this environment of workforce in the future. Okay. guidance. I think this was kind of what scared Wall Street a bit when they saw the guidance, because guidance was very conservative, they had revenue range of 89 million to 91 million.
Which was about in line with analysts were expecting, but I think honestly, everybody just had bigger expectations or hopes that the numbers would have been very, you know, stronger. And on the conference call is very clear. They wanted to take a very cautious approach, which I think is fine.
In this type of environment, we have so many things changing, you know, what’s going to happen to unemployment benefits, you know, obviously, there’s a very high unemployment rate. There’s a lot of moving parts right now.
It’s a very, you know, if the time in the economy in general is the most iffy, we’ve seen since the Great Recession, right, in terms of what’s going to happen next, are we gonna get back to growth? Are things gonna resume as they were before in 2021? You know, we, this all has to play out.
So they took a very cautious approach, understanding all that. And ultimately, at the end of the day, I think it was the right move, I think they’re gonna likely beat what their guidance was, and I think they’re gonna be what you know analysts have out there for numbers.
I think they’re gonna do you know, I don’t know if they’ll do 100 mil revenue next quarter, but I could definitely see 95 million plus next quarter, but obviously, I’m looking at this company as a long term investment.
So if they do 90 million or 95 million or 100 million, next quarter and revenue, you know, it doesn’t really make that much of a difference considering I’m gonna be in the stock for the next several years more than likely Okay, cuz I’ve really gotten bullish on the stock now. Okay.
Looking at the balance sheet, look at this balance sheet, guys. Very impressive. First thing Once you look at total assets 488 million and we look at total liabilities 218 million okay? That’s very nice about what $270 million difference there in total assets versus liabilities. Very nice number Okay.
Now if you know me The thing I like to look at even more than that is cash and marketable securities versus debts. And if you look at cash and cash equivalents, 76 mil marketable securities 69 mil. And in terms of debt as far as non current debt, only 6.9 mil, I mean, look at that balance sheet.
Okay, what if I had agreed this balance sheet, would I grade this balance sheet as like a six figure club award? Or what I grade this balance sheet is more like a seven figure club award? Hmm. It’s tough. It’s tough.
Not really that tough Carol grid, the balance sheet as a seven figure club award. Okay, just a pristine, beautiful balance sheet at this company. You guys know, I love a great balance sheet. Okay. Now let’s get serious.
And let’s talk about competition. Okay, who are their competitors? Well, there are a few different competitors out there. But in my opinion, the way I see this playing out over time, I think Fiverr will be the main competition for Upwork long term.
Okay. Like I said, there’s different players in this market. But I absolutely think the main player, the main competition for Upwork will be Fiverr. Okay. And if you look at Fiverr, this is a company that’s growing very rapidly, you know, and a lot of Wall Street loves the stock right now, when it comes to Fiverr.
Because they’re growing so fast, but they’re growing off a really small base. I mean, you look at them compared to Upwork. Right? 100 million revenues last year versus Upwork. Did what three times that? So yes, Fiverr has the super, super impressive, insane growth rates right now.
Whereas Upwork just has really strong growth rates, but also fivers, or little guy compared to Upwork, which is a, you know, a very, very, very big company. But at the end of the day, I think there’s plenty of room for Upwork and Fiverr, is this market of freelance economy, remote work, all these sorts of things.
That that, you know, companies like this are going to benefit from these, these aren’t going away, this is just going to get bigger and bigger and bigger. And the TAM opportunity, which is something I talked about when I talk about, you know, valuing growth stocks, Tam, total addressable market for this space is absolutely massive, okay.
And it’s just going to continue to expand over the next decade, in my opinion, the TAM opportunity for these companies, you know, they were talking about billions upon billions, if not 10s of billions of dollars, if not $100 billion plus overtime.
So there’s going to be plenty of room for companies like Upwork and Fiverr, in my opinion, to grow for the long, long time into the future. Okay. But Upwork, in my opinion, will be number one in this market long term.
I think they just I think they have the right strategy that already a lot bigger, they’re making a lot of inroads with big companies, which I think is very, very important when it comes to Upwork. So in my opinion, Upwork is going to be number one, that’s why I placed kind of my chips with Upwork versus Fiverr.
It also Fiverr has a 4 billion plus dollar valuation versus obviously Upwork and paying 1.6 billion. So if I think Upwork has a chance to be the number one player in this market over Fiverr, and I’m getting a massively cheaper valuation. Obviously, the one I’m going to invest in is Upwork.
Okay, and by the way, even, let’s say, if Fiverr beat them out long term, let’s say Fiverr goes number one, or you know, 10 years from now Upwork number two, even if that scenario played out, I think Upwork will still make me a massive amount of money because like, it’s like I told you guys, so the TAM opportunity in this market is massive.
Okay, but I’m fairly confident Upwork can win this. Okay. Now, lastly, let’s talk about will I buy more of this stock? How much money am I looking to put in the stock 100k 50k? You know, a quarter mil half mill and mill like, let’s talk about those sorts of things now. Okay. So will I buy more?
Yes, absolutely. I’m interested in buying more of this stock. Okay, in terms of what I own right now, I own $11,000 and some change worth of upward shares in I think this one’s a public Count 825 shares there. Okay. And then in terms of one of my private accounts.
I also own so up work about another 11,000 or so that one’s 815 shares. So total right now I own about 20 to $23,000, roughly worth of upward shares. And I like the stock a lot under 20. Okay, anytime it goes under 20. I just feel like it’s a really good buy long term if you’re a long term investor.
Okay. And which is obviously my scenario where I’m investing in a stock for the next several years under 15. I love the stock. Let me be very clear when this and obviously the stock has now gone under 15, which is why I start buying it again.
I absolutely love love this stock. If it’s under $15 a share. I think it’s going to be a nice moneymaker for me over the next several years. If we’re looking at this as a three five year span. I think you know, this is a company that has really big potential, and it’s a really small market cap, relatively speaking in the stock market.
And can I see a day where Upwork is valued at 510, if not more than $10 billion? Absolutely, I can and the valuation right now is 1.6 billion, so under 15 minutes, I just love it for the stock but even under 20 I’m still interested in buying the stock.
I gotta say I do. Like it, I’m more bullish after this most recent quarter I saw, I’m more bullish on it than I’ve ever been before, okay, which I owned a little bit before I was just, you know, bought more recently, okay, now, I will probably limit my position at about $150,000 for the stock.
I don’t really see me building this into a quarter million dollar position, or half million dollar position, or even a million dollar position, I think about 150k I’m very confident this company, I think I’m gonna do very well on it, but it’s not really the type of company.
I could necessarily see myself building into a top five position, top 10 position, you know, potentially top five I you know, massive position. I don’t know if I go that far with this stock. So I love it. I think I’m gonna make good money in it.
But yeah, I’ll limit the position sizing at about $150,000 Okay, so I hope you guys enjoyed today’s video. As always, if you don’t mind before you leave, go ahead and smash that thumbs up button, you know, helps out the YouTube channel immensely.
And lets me know you guys enjoyed a video like this where we went really in depth. And also if you’re looking to scale your stock market portfolio, somebody who has five figures plus in the stock market, or looking to invest five figures plus over the next 12 months, go ahead and apply down there.
Hopefully we can get on a call with you tell you about a product we have actually that will you know help you achieve your goals and scale your stock market portfolio and things like that. I’ll probably have this a pinned comment, or I’ll have it as the first link in the description down there.
Thank you for watching and have a great day.