Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Robinhood (NASDAQ:HOOD) and the best and worst performers in the online marketplace industry.
Marketplaces have existed for centuries. Where once it was a main street in a small town or a mall in the suburbs, sellers benefitted from proximity to one another because they could draw customers by offering convenience and selection. Today, a myriad of online marketplaces fulfill that same role, aggregating large customer bases, which attracts commission-paying sellers, generating flywheel scale effects that feed back into further customer acquisition.
The 16 online marketplace stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 5.2%. while next quarter's revenue guidance was 2.4% above consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the online marketplace stocks have fared somewhat better than others, they collectively declined, with share prices falling 0.9% on average since the previous earnings results.
Robinhood (NASDAQ:HOOD) With a mission to democratize finance, Robinhood (NASDAQ:HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.
Robinhood reported revenues of $618 million, up 40.1% year on year, exceeding analysts' expectations by 11.4%. Overall, it was a very strong quarter for the company with exceptional revenue growth.
The stock is up 35.8% since reporting and currently trades at $24.26.
Is now the time to buy Robinhood? Find out by reading the original article on StockStory, it's free. Best Q1: MercadoLibre (NASDAQ:MELI)Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
MercadoLibre reported revenues of $4.33 billion, up 36% year on year, outperforming analysts' expectations by 12.1%. It was a stunning quarter for the company with exceptional revenue growth.
The market seems happy with the results as the stock is up 15.8% since reporting. It currently trades at $1,746.
Slowest Q1: CarGurus (NASDAQ:CARG)Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ:CARG) is a digital marketplace where auto dealers can connect with potential customers and where car buyers can browse, purchase, and obtain financing.
CarGurus reported revenues of $215.8 million, down 7% year on year, in line with analysts' expectations. It was a weak quarter for the company with slow revenue growth and underwhelming revenue guidance for the next quarter.
Interestingly, the stock is up 15.9% since the results and currently trades at $25.81.
The RealReal (NASDAQ:REAL)Founded by consignment store aficionado Julie Wainwright, The RealReal (NASDAQ: REAL) is an online marketplace for buying and selling secondhand luxury goods.
The RealReal reported revenues of $143.8 million, up 1.3% year on year, surpassing analysts' expectations by 3.3%. Taking a step back, it was a weaker quarter for the company with a decline in its users and slow revenue growth.
The company reported 922,000 users, down 9.1% year on year. The stock is down 4.9% since reporting and currently trades at $3.59.
EverQuote (NASDAQ:EVER)Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
EverQuote reported revenues of $91.07 million, down 16.6% year on year, surpassing analysts' expectations by 13.4%. More broadly, it was a very strong quarter for the company with optimistic revenue guidance for the next quarter.
EverQuote had the slowest revenue growth among its peers. The stock is up 4.5% since reporting and currently trades at $22.30.
This content was originally published on Stock Story
