How analysts are playing gig economy stocks ahead of earnings

Wall Street will be following earnings from gig economy companies in the coming weeks to see if and how they've been impacted by pandemic recovery trends. But analysts aren't fully aligned on how to play the sector. The 2022 selloffs underscored the challenges gig economy stocks have faced in recent years as novelty and venture capital funding chilled, analysts have said to clients.

Bernstein analyst Nikhil Devnani called the company "confusing" and rated it market perform heading into earnings. While he said fourth-quarter estimates feel conservative given the company's service fee increases and recovery tailwinds, recent outperformance and the uncertain broader economic outlook make it difficult to set expectations. He's the only analyst of the three who expects the stock to see an upside in the next year.

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Gig economy is a house of cards

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