My Friend in Her 80s Is Part of the Gig Economy's Bright Future
byCOVID-19-
My friend Judy rents out rooms in her home as an Airbnb (ABNB)... The idea of complete strangers sleeping in my house on a regular basis sends chills up my spine. I get the same feeling about strangers just spending a night in my house, too.
My Friend in Her 80s Is Part of the Gig Economy's Bright Future
By Joe Austin, senior analyst, Chaikin Analytics
My friend Judy rents out rooms in her home as an Airbnb (ABNB)...
The idea of complete strangers sleeping in my house on a regular basis sends chills up my spine. I get the same feeling about strangers just spending a night in my house, too.
But Judy loves it.
You see, Judy is in her 80s. And she retired nearly 10 years ago. She lives in a big house with five bedrooms.
But back when she worked, Judy ran a successful catering business. So you couldn't ask for a better host.
And as far as she's concerned, the money isn't the most important thing...
Judy loves the company. And along the way, she has made some great friends.
Some of her guests enjoyed the visits so much that they bought houses close by.
And as soon as this summer is over, Judy is even taking a trip to visit others in their homes.
As the mainstream media warns of a historic bubble in stocks, more than 1,000 questions have poured in from Chaikin Analytics subscribers in recent weeks on how to navigate this uncertain moment in the markets. On Tuesday, August 26, Marc Chaikin is stepping forward to share his answers, including an URGENT update on his 2025 market forecast. Click here to learn more and save your spot.
The U.S. Department of the Interior's internal memo has leaked... And the contents are shocking. A federally backed resource-monetization plan may soon go live, and it could trigger a new gold rush in select energy and mineral stocks. Investing legend Whitney Tilson breaks it all down here.
The Gig Economy Is Booming
The term "gig" originated with jazz musicians in the 1920s. For them, a gig was quick work to pay the bills between bigger opportunities.
Today's gig economy is partially a result of technological change and partially a result of economic necessity...
On the technological side, first came smartphones. These allowed workers to take and execute orders from anywhere, anytime.
Then came cloud computing. That became the backbone that matched workers with work.
And the economic necessity part was mainly coincidental...
The first iteration of today's gig economy jobs was driving for Uber Technologies (UBER) back in 2009. That coincided with peak unemployment of 10% in the wake of the 2008 financial crisis.
Lots of folks needed work. For some of them, Uber was the only option they had.
Then came COVID-19. In April 2020, the unemployment rate hit nearly 15%. And once again, those gig jobs looked attractive.
According to the National Bureau of Economic Research, nearly 2.1 million workers took gig-economy jobs that year. That was double the number versus 2019.
In 2021, another 3.1 million people took gig economy jobs. By the end of that year, more than 1 million had left.
But what started as a crisis became structural.
The gig economy was here to stay.
However, the top gig-economy companies are currently doing a lot more than merely providing part-time jobs...
Uber and DoorDash (DASH) are going after the critical "last mile" delivery market. That's a nearly $200 billion market today. And it's growing at about 10% per year.
Grocery-delivery leader Maplebear (CART) is going after that business, too. But it also wants to become the "front end" for any retailer online.
Known as "headless commerce," that market is estimated to be worth about $1.7 billion this year. It's growing at more than 22% annually.
And the original ride-sharing market shows no signs of slowing down...
Global ride-sharing revenues came in at about $43 billion last year. And that's expected to grow by nearly 14% annually through 2030.
Lyft (LYFT) remains focused solely on that market. And it's seeking growth by providing better customer service and car alternatives like scooters.
Of the top gig-economy companies, Airbnb's growth is lagging. The company is having multiple problems with both host and guests. But the short-term vacation rental market is still growing at more than 11% annually.
Booking Holdings (BKNG) – the parent company of online-travel agency Booking.com – is also a big part of the problems at Airbnb...
Last year, it booked about 80% of the nights that Airbnb did. And it did so with only half of the number of properties. Booking.com has also seen its share of the short-term rental market grow from 14% in 2019 to 18% through the end of 2024.
Meanwhile, the Power Gauge paints a mixed picture across the five gig-economy companies I discussed...
It currently gives two of them "bullish" ratings. One is rated "bearish." And the other two are in "neutral" territory.
Notably, DoorDash and Lyft have the highest revenue growth over the past 12 months of the group.
And with all the growth in the target markets here, revenue growth is the best indicator of success going forward.
So whether it's Judy making money by turning strangers into friends, or massive tech platforms handling last-mile delivery... gig-economy companies have proved they can bring success to all levels of our economy.
And for investors, these businesses become some of the most compelling growth opportunities in today's market.
Looking ahead, there's little question that the growth will continue...
It's just a matter of who captures the biggest share of the massive opportunity ahead.
Good investing,
Joe Austin
Marc Chaikin: 'Ask Me Anything'
Next Tuesday, August 26, Marc Chaikin is doing something he has never done before. After a wild six months for stocks, Marc knows you may have many lingering questions. So, he'll be going on camera – NOT to discuss a specific opportunity, but instead to devote his time to answering YOUR most pressing questions.
But we need to hear from YOU. If something is keeping you up at night (whether it worries or excites you), we want to hear from you. Marc will answer as many questions as possible during his "Ask Me Anything" event next Tuesday.
— According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain somewhat Bullish. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Health Care
+3.16%
Real Estate
+1.16%
Consumer Staples
+0.71%
Financial
+0.21%
Energy
+0.18%
Utilities
-0.35%
Industrials
-0.83%
Materials
-0.95%
Consumer Discretionary
-0.99%
Communication
-1.13%
Information Technology
-3.15%
* * * *
Industry Focus
Innovative Technology Services
25
61
10
Over the past 6 months, the Innovative Technology subsector (XITK) has underperformed the S&P 500 by -10.04%. However, its Power Bar ratio, which measures future potential, is Strong, with more Bullish than Bearish stocks. It is currently ranked #12 of 21 subsectors and has moved down 1 slot over the past week.
Top Stocks
ACLS
Axcelis Technologies
BMBL
Bumble Inc.
ANET
Arista Networks Inc
* * * *
Top Movers
Gainers
ADI
+6.26%
MCK
+3.85%
MDT
+3.69%
FDS
+3.62%
REGN
+3.36%
Losers
INTC
-6.99%
TGT
-6.33%
DELL
-4.97%
GNRC
-4.74%
LII
-3.98%
* * * *
Earnings Report
Earnings Surprises
TJX The TJX Companies, Inc.
Q2
$1.10
Beat by $0.09
ADI Analog Devices, Inc.
Q3
$2.05
Beat by $0.10
LOW Lowe's Companies, Inc.
Q2
$4.33
Beat by $0.09
TGT Target Corporation
Q2
$2.05
Beat by $0.01
EL The Estée Lauder Companies Inc.
Q4
$0.09
Met estimate
* * * *
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