RBC cuts UPWK stock estimates on tempered growth outlook

Tuesday saw RBC Capital Markets adjusting its expectations for several internet companies ahead of their earnings reports. Analysts at RBC provided insights into potential outcomes for Zillow Group (NASDAQ:ZG), DoorDash (NYSE:NASDAQ:DASH), Lyft (NASDAQ:LYFT), ANGI Homeservices (NASDAQ:ANGI), Upwork (NASDAQ:UPWK), Airbnb (NASDAQ:ABNB), and GoDaddy (NYSE:GDDY).

For Zillow Group, analysts believe the fourth quarter results may have surpassed the company’s own guidance, thanks to the data from the National Association of Realtors’ Existing Home Sales reports. There is a debate on whether Zillow will maintain or slightly lower its first-quarter guidance. The company’s stock has seen a positive trend, with investors showing more confidence in Zillow’s market share gains and looking forward to more transparency in measuring the company’s progress.

DoorDash is acknowledged for its solid execution, but the recent stock performance has raised expectations for its 2025 EBITDA projections, now hovering around $3 billion. With no full-year guidance provided, the focus is on the first-quarter guidance, with analysts’ estimates at approximately $587 million. RBC analysts maintain a positive outlook on DoorDash’s ability to balance growth reinvestment with profitability in new markets.

Airbnb’s upcoming earnings have investors anticipating a potential reduction in margin outlook. The key question is whether a guide to low-double-digit room nights will be sufficient under the scenario of a revised margin forecast. While long-term investors remain on the sidelines, short-term traders have taken a more bearish stance. RBC is awaiting a more favorable entry point to become more constructive on Airbnb’s stock.

Lyft is perceived to have a less favorable risk/reward balance based purely on fundamentals. According to InvestingPro data, the company has shown strong momentum with a 54.92% price return over the past six months, despite not being profitable in the last twelve months. The stock currently trades below its InvestingPro Fair Value, suggesting potential upside opportunity. Analyst targets range from $14 to $26, with a consensus recommendation of 2.46 on a scale of 1-5. While there are concerns regarding the autonomous vehicle terminal value risk, the company’s revenue grew by 25.41% in the last twelve months, and analysts expect profitability this year.For investors seeking deeper insights, InvestingPro subscribers have access to 12 additional ProTips and a comprehensive Pro Research Report that provides detailed analysis of Lyft’s financial health, valuation metrics, and growth prospects among 1,400+ top US stocks.

Lastly, RBC has slightly lowered its estimates for Upwork, citing more conservative assumptions about the Gross Services Volume (GSV) in 2025. This adjustment reflects a more tempered outlook for the company’s growth trajectory.Want to stay ahead of market movements and make informed investment decisions? InvestingPro offers real-time financial metrics, Fair Value calculations, and expert analysis for over 1,400 US stocks, helping you identify valuable investment opportunities before the market catches up.

As these companies prepare to release their earnings, RBC’s analysis provides a framework for what to expect from their financial performances and strategic outlooks.

In other recent news, Lyft, the ride-hailing company, has seen substantial developments. BofA Securities boosted Lyft’s stock price target to $21 from $19, maintaining a Buy rating. This adjustment follows Lyft’s announcement about its partnership with Mobileye, an autonomous vehicle technology developer, and the addition of Marubeni Corporation, a Tokyo-based entity, as a new collaborator.

Lyft plans to deploy a fleet of autonomous vehicles equipped with Mobileye technology on its platform in Dallas as early as 2026, with further expansion expected thereafter. This move is part of Lyft’s broader strategy to integrate autonomous vehicles into its service offerings.

Wolfe Research maintained a Peerperform rating for Lyft ahead of its fourth-quarter earnings report, indicating a positive outlook. The firm anticipates that Lyft will see a 16.9% year-over-year growth in Bookings, slightly higher than the Street’s expectation of a 15.7% increase.

In collaboration with AI firm Anthropic, Lyft aims to develop new products to enhance the rideshare experience for its users. The partnership’s first phase has already seen Lyft integrating Anthropic’s Claude via Amazon (NASDAQ:AMZN) Bedrock into its customer care AI assistant, reportedly reducing the average customer service resolution time by 87%.

These recent developments reflect Lyft’s commitment to innovation in the transportation sector and its efforts to stay at the forefront of the evolving mobility landscape.

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