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Today's Featured Content Can Upwork Maintain Its Comeback? Reasons to Be Bullish and BearishWritten by Dan Schmidt. Published 12/17/2025. 
Key Points - Upwork was a popular meme stock in 2021, but the company hasn't come close to matching those highs in the 4 years since.
- Despite its negative reputation, Upwork has become a profitable enterprise that's embraced AI for more complex jobs.
- While fundamental and technical tailwinds are in place, a few factors are still weighing on the stock that investors should be aware of as they enter 2026.
Traders might fondly remember the meme-stock era of 2021, but the companies involved have had mixed outcomes. Most — if not all — meme stocks have never come close to their 2021 highs and currently reside in the market's dustbin. One of those former high-flyers is Upwork Inc. (NASDAQ: UPWK), the online gig marketplace that went public in 2018. Upwork appeared to be in danger of penny-stock status before COVID-19 struck, and shares soared from $6 to $58 over 18 months. Just like Microsoft and Adobe rode the software wave in Web 1.0, RAD Intel is riding the AI software wave in 2025. Their product helps brands instantly find the right audience and message using AI – solving the #1 waste in marketing: misfired ad spend.
Already trusted by a who's-who of Fortune 1000 brands and leading global agencies – with recurring seven-figure partnerships in place. With a Nasdaq ticker reserved, $RADI, it's early – but very real. $0.85 Won't Last – Secure Your Shares Now. Of course, UPWK was back under $10 a share shortly after the Fed started raising rates, and the whole run felt like a fever dream. But now Upwork is once again soaring, and this time the roughly 30% gain is driven by more than just cheap money. Can the stock sustain this momentum as we enter 2026? We've got three reasons to be optimistic — and two reasons to remain cautious. 3 Reasons to be Bullish on UPWK in 2026 If Upwork continues to climb, 2025 may be remembered as the year the company became a more mature tech-sector company. Revenue has been growing, and the business has embraced AI, signaling long-term adaptability. There are fundamental and technical tailwinds behind the rally, including these three factors. -
Revenue Growth Turning into Profitability It's one thing to grow top-line revenue; eventually that growth needs to translate into profits, particularly after seven years as a public company. Upwork has begun turning revenue into profits and is showing growth across several key areas. Not only has the company been beating top- and bottom-line expectations, but margins have reached record levels (29.6%), and the all-important Gross Services Volume (GSV) metric returned to growth in Q3 2025, up about 2% year-over-year. During the Q3 conference call, Upwork raised full-year revenue and EBITDA guidance and highlighted its AI advances, which leads to our next factor. -
Successfully Mitigating AI Headwinds Many analysts expected generative AI to be an existential threat to freelance marketplaces, where many tasks are one-off gigs companies could theoretically source from ChatGPT or Gemini. Instead of losing clients, Upwork embraced AI for hybrid workflows. Companies can now combine human freelancers with specialized AI agents for complex projects, and AI-driven GSV has grown more than 50% year-over-year. The company also introduced UMA, its "work companion," to help freelancers and clients connect more efficiently. -
Technical Trends Point to More Upside Strong fundamentals can take time to show up in the share price if technical tailwinds are absent. This time, Upwork has both — record sales, expanding margins, and encouraging technicals. The stock sent mixed signals earlier when the price dipped despite a Golden Cross forming on the 50-day and 200-day simple moving averages (SMAs).  The Golden Cross wasn't wrong — it was just early. The 50-day SMA wobbled but held as support, and the stock quickly reclaimed the 2025 high it notched in September. The Relative Strength Index (RSI) is elevated but still below the overbought threshold of 70, suggesting there could be more upside to come. 2 Reasons to be Bearish on UPWK in 2026 2025 performance aside, investors are most interested in what's likely to happen in 2026. For investors considering a position in UPWK, here are two risks to monitor. -
Shrinking Volume of Small Gigs AI has helped Upwork's overall revenue growth, but it has also revealed some vulnerabilities. GSV is rising overall, yet smaller jobs paying $300 or less are disappearing as companies increasingly turn to generative AI rather than one-time freelancers to avoid onboarding and administrative costs. If Upwork cedes these smaller gigs to AI tools or competitors like Fiverr International Ltd. (NYSE: FVRR), the marketplace could shrink again in GSV terms — even if higher-value projects remain plentiful. -
Broader Labor Market Weakness The macro picture is currently stable: the Federal Reserve lowered rates again this month, and low rates often benefit small-cap companies with healthy cash flow and reasonable valuations. But the labor market is a canary in the coal mine for Upwork, and the company's Enterprise segment (which serves large corporate clients) has already shown signs of weakness this year. Additionally, the company's new Lifted platform for Enterprise clients is expected to require substantial integration costs, which could shave about 2% off margins in 2026. Margin stagnation combined with a slowing job market or a recession would likely reverse Upwork's recent profit improvements and put pressure on the stock.
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