Q2 Earnings Outperformers: CarGurus (NASDAQ:CARG) And The Rest Of The Online Marketplace Stocks

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how online marketplace stocks fared in Q2, starting with CarGurus (NASDAQ:CARG).

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 14 online marketplace stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.7% while next quarter’s revenue guidance was 0.6% below.

Luckily, online marketplace stocks have performed well with share prices up 17.2% on average since the latest earnings results.

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 $234 million, up 7% year on year. This print exceeded analysts’ expectations by 0.7%. Overall, it was a satisfactory quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations but revenue guidance for next quarter missing analysts’ expectations significantly.

“Our Marketplace business had another strong quarter, with year-over-year revenue growth of 14%,” said Jason Trevisan, Chief Executive Officer at CarGurus.

Interestingly, the stock is up 15.6% since reporting and currently trades at $36.30.

Is now the time to buy CarGurus? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q2: Shutterstock (NYSE:SSTK)

Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.

Shutterstock reported revenues of $267 million, up 21.3% year on year, outperforming analysts’ expectations by 7.5%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA and paid downloads estimates.

The market seems happy with the results as the stock is up 26.1% since reporting. It currently trades at $24.99.

Is now the time to buy Shutterstock? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: ACV Auctions (NYSE:ACVA)

Founded in 2014, ACV Auctions (NASDAQ:ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.

ACV Auctions reported revenues of $193.7 million, up 20.6% year on year, falling short of analysts’ expectations by 1.2%. It was a disappointing quarter as it posted a significant miss of analysts’ number of marketplace units estimates and revenue guidance for next quarter missing analysts’ expectations significantly.

ACV Auctions delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. The company reported 210,429 units sold, up 12.8% year on year. As expected, the stock is down 28.1% since the results and currently trades at $9.59.

Read our full analysis of ACV Auctions’s results here.

eHealth (NASDAQ:EHTH)

Aiming to address a high-stakes and often confusing decision, eHealth (NASDAQ:EHTH) guides consumers through health insurance enrollment and related topics.

eHealth reported revenues of $60.78 million, down 7.7% year on year. This number surpassed analysts’ expectations by 31%. Overall, it was an exceptional quarter as it also produced a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

eHealth achieved the biggest analyst estimates beat but had the slowest revenue growth among its peers. The company reported 1.15 million users, down 2.6% year on year. The stock is up 68.7% since reporting and currently trades at $5.50.

Read our full, actionable report on eHealth here, it’s free for active Edge members.

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 $178.7 million, flat year on year. This result was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it also recorded a narrow beat of analysts’ EBITDA estimates but revenue in line with analysts’ estimates.

The company reported 19,412 active buyers, up 0.1% year on year. The stock is down 14% since reporting and currently trades at $11.30.

Read our full, actionable report on Cars.com here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.