Winners And Losers Of Q2: Robinhood (NASDAQ:HOOD) Vs The Rest Of The Online Marketplace Stocks
Let’s dig into the relative performance of Robinhood (NASDAQ:HOOD) and its peers as we unravel the now-completed Q2 online marketplace earnings season.
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 a decent Q2. As a group, revenues beat analysts’ consensus estimates by 4.9% while next quarter’s revenue guidance was 5.1% above.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. Thankfully, online marketplace stocks have been resilient with share prices up 5.1% on average since the latest 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 $682 million, up 40.3% year on year. This print exceeded analysts’ expectations by 6.1%. Overall, it was a solid quarter for the company with exceptional revenue growth.
Interestingly, the stock is up 18% since reporting and currently trades at $20.21.
We think Robinhood is a good business, but is it a buy today? Read our full report here, it’s free.
Best Q2: 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 $117.1 million, up 72.3% year on year, outperforming analysts’ expectations by 13.9%. It was an incredible quarter for the company with optimistic revenue guidance for the next quarter and exceptional revenue growth.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.8% since reporting. It currently trades at $21.39.
Is now the time to buy EverQuote? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Cars.com (NYSE:CARS)
Originally started as a joint venture between several media companies including The Washington Post and The New York Times, Cars.com (NYSE:CARS) is a digital marketplace that connects new and used car buyers and sellers.
Cars.com reported revenues of $178.9 million, up 6.4% year on year, falling short of analysts’ expectations by 1.6%. It was a weak quarter for the company with underwhelming revenue guidance for the next quarter and slow revenue growth.
Cars.com posted the weakest performance against analyst estimates in the group. The company reported 19,390 active buyers, up 3.2% year on year. As expected, the stock is down 1.8% since the results and currently trades at $17.56.
Read our full analysis of Cars.com’s results here.
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 $5.07 billion, up 41.5% year on year, surpassing analysts’ expectations by 8.3%. Zooming out, it was a very strong quarter for the company with exceptional revenue growth.
The stock is up 25.3% since reporting and currently trades at $2,010.
Read our full, actionable report on MercadoLibre here, it’s free.
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 $218.7 million, down 8.8% year on year, surpassing analysts’ expectations by 1.4%. Overall, it was a mixed quarter for the company with in-line revenue guidance for the next quarter but slow revenue growth.
CarGurus had the slowest revenue growth among its peers. The company reported 31,352 users, up 0.8% year on year. The stock is up 28.2% since reporting and currently trades at $28.72.
Read our full, actionable report on CarGurus here, it’s free.
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