What Happened?
A number of stocks jumped in the afternoon session after markets continued to rally as the latest inflation data reinforced expectations for a Federal Reserve rate cut as soon as September. The latest Consumer Price Index (CPI) report for July showed inflation holding steady, reinforcing market expectations that the Federal Reserve could begin cutting interest rates as soon as September. Lower interest rates generally stimulate the economy by making borrowing cheaper for consumers and businesses. This can lead to increased consumer spending and e-commerce activity, which directly benefits online retail and marketplace companies. The positive economic outlook fueled a broad-based rally, pushing the S&P 500 and Nasdaq to new record highs and lifting most growth-oriented technology stocks.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Online Marketplace company ACV Auctions (NYSE: ACVA) jumped 3.2%. Is now the time to buy ACV Auctions? Access our full analysis report here, it’s free.
- Online Marketplace company eBay (NASDAQ: EBAY) jumped 3%. Is now the time to buy eBay? Access our full analysis report here, it’s free.
- Gig Economy company Upwork (NASDAQ: UPWK) jumped 3.2%. Is now the time to buy Upwork? Access our full analysis report here, it’s free.
Zooming In On Upwork (UPWK)
Upwork’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 22 days ago when the stock gained 3.3% on the news that Jefferies initiated coverage of the company with a "Buy" rating, and a new filing revealed a significant purchase by an institutional investor. The investment bank set a price target of $18 per share, citing Upwork's strong position to capitalize on the global shift toward flexible and remote work. Analysts are optimistic about the company's growth prospects, driven by the adoption of AI-powered tools on its platform and increasing use by enterprise clients. Adding to the positive sentiment, a new SEC filing disclosed that investment firm Jennison Associates LLC has taken a new position in Upwork, purchasing over 50,000 shares. This type of institutional investment often signals confidence in a company's future performance. The stock's move comes as investors anticipate Upwork's second-quarter earnings report, which is scheduled for August 6, 2025.
Upwork is down 13.7% since the beginning of the year, and at $14.17 per share, it is trading 19% below its 52-week high of $17.50 from May 2025. Investors who bought $1,000 worth of Upwork’s shares 5 years ago would now be looking at an investment worth $944.04.
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