Online Marketplace Stocks Q4 Teardown: CarGurus (NASDAQ:CARG) Vs The Rest

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at online marketplace stocks, 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 13 online marketplace stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17% 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 $228.5 million, up 2.4% year on year. This print fell short of analysts’ expectations by 1.8%. Overall, it was a mixed quarter for the company with EBITDA guidance for next quarter topping analysts’ expectations.

“We delivered exceptional results in 2024, with sustained revenue acceleration and significant margin expansion across geographies. Our Marketplace business achieved double-digit growth, driven by continued migration to premium tiers, strong OEM advertising demand, and growing adoption of our value-added products and services," said Jason Trevisan, Chief Executive Officer at CarGurus.

The stock is down 25.3% since reporting and currently trades at $28.11.

Read our full report on CarGurus here, it’s free.

Best Q4: 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 $6.06 billion, up 37.4% year on year, outperforming analysts’ expectations by 2.8%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ number of unique active users estimates.

The market seems happy with the results as the stock is up 5% since reporting. It currently trades at $2,226.

Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Teladoc (NYSE:TDOC)

Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE:TDOC) is a telemedicine platform that facilitates remote doctor’s visits.

Teladoc reported revenues of $640.5 million, down 3% year on year, in line with analysts’ expectations. It was a softer quarter as it posted full-year EBITDA guidance missing analysts’ expectations.

Teladoc delivered the slowest revenue growth in the group. The company reported 93.8 million users, up 4.7% year on year. As expected, the stock is down 34.7% since the results and currently trades at $7.18.

Read our full analysis of Teladoc’s results here.

Etsy (NASDAQ:ETSY)

Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NASDAQ:ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.

Etsy reported revenues of $852.2 million, up 1.2% year on year. This print lagged analysts' expectations by 1.2%. Overall, it was a softer quarter as it also produced a slight miss of analysts’ number of active buyers estimates.

The company reported 95.46 million active buyers, down 1.1% year on year. The stock is down 20.1% since reporting and currently trades at $45.80.

Read our full, actionable report on Etsy here, it’s free.

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 $315.2 million, up 27.3% year on year. This result topped analysts’ expectations by 11.4%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ EBITDA estimates.

eHealth scored the biggest analyst estimates beat among its peers. The stock is down 34.3% since reporting and currently trades at $6.02.

Read our full, actionable report on eHealth here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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

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