RBC Capital analyst Brad Erickson lists nine companies reporting in the firm's universe this week.
In terms of tactical opportunities, Fiverr International Ltd (NYSE: FVRR) (Sector Perform, price target $34) and Bumble Inc (NASDAQ: BMBL) (Outperform, price target $23) stand out as having the most favorable risk/ rewards of the group in his view.
The analyst projects 3Q revenue of $91.3 million for Fiverr (consensus $91.2 million) and $276.0 million for Bumble (consensus $277.0 million).
Regarding end-market commentary, mobility/delivery demand likely remains strong in the face of a seemingly more challenged consumer (Uber Technologies, Inc (NYSE: UBER) has an Outperform rating and $58 price target. Lyft, Inc (NASDAQ: LYFT) has a Sector Perform and a $12 price target. The analyst projects Q3 revenue of $9.55 billion for Uber (consensus $$9.54 billion) and $1.14 billion for Lyft (in line with the consensus).
Erickson flags ESMB activity and spending remains mostly stable but with muted top-of-funnel likely continuing (Squarespace, Inc (NYSE: SQSP), Upwork Inc (NASDAQ: UPWK), Fiverr, Wix.Com Ltd (NASDAQ: WIX)).
Squarespace has a Sector Perform and price target of $32.
Upwork has a Sector Perform and a price target of $11. Wix has an Outperform and price target of $120.
The analyst projects Q3 revenue of $251.6 million for Squarespace (consensus $251.9 million), $167.3 million for Upwork (consensus $$168.2 million), and $390 million for Wix (in line with the consensus).
The analyst notes that live event demand is likely running ahead of plan, and used car retail is stable but with wholesale volumes probably softening into the end of the year (CarGurus, Inc (NASDAQ: CARG)) (Outperform, price target $24). He projects Q3 revenue of $215.3 million (consensus $216.0 million).
Lastly, it's unclear to what extent the unfortunate Middle East war could affect WIX & FVRR (both Tel Aviv-based), where Erickson estimates a single-digit percentage of employees are on active reserve. While Israel's revenue is minimal for both (~1%), the risk exposure would seem to remain a function of the war's duration.