What Happened?
Shares of online work marketplace Upwork (NASDAQ:UPWK) jumped 3.3% in the afternoon session after 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.
After the initial pop the shares cooled down to $13.76, up 2.7% from previous close.
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What Is The Market Telling Us
Upwork’s shares are very volatile and have had 22 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 11 days ago when the stock dropped 3.2% on the news that the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada.
This move is far more than a typical trade dispute; it targets the United States' largest and most deeply integrated trading partner. Canada is not merely a neighbor but a critical component of North American supply chains, particularly in sectors like automotive, energy, and critical minerals.
This sparked concerns about potential retaliatory actions and a wider impact on the North American economy, leading to a risk-off sentiment among investors. The S&P 500, Dow Jones Industrial Average, and Nasdaq all opened lower, pulling back from recent record highs and heading for their first weekly loss in three weeks.
Upwork is down 16.2% since the beginning of the year, and at $13.76 per share, it is trading 21.4% 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 $976.22.
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