Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at CarGurus (NASDAQ:CARG) and the best and worst performers in the online marketplace industry.
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 satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 7.3% 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 $225.2 million, up 4.3% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations but revenue guidance for next quarter meeting analysts’ expectations.
"Our strong momentum in our Marketplace business continued into 2025, which grew 13% year-over-year,” said Jason Trevisan, Chief Executive Officer at CarGurus.
Interestingly, the stock is up 18.6% since reporting and currently trades at $33.16.
Is now the time to buy CarGurus? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $113.1 million, up 21.7% year on year, outperforming analysts’ expectations by 13.4%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates.
eHealth delivered the biggest analyst estimates beat among its peers. On a dimmer note, the company reported 1.16 million users, down 1.8% year on year. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 21.5% since reporting. It currently trades at $3.67.
Is now the time to buy eHealth? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: The RealReal (NASDAQ:REAL)
Founded by consignment store aficionado Julie Wainwright, The RealReal (NASDAQ: REAL) is an online marketplace for buying and selling secondhand luxury goods.
The RealReal reported revenues of $160 million, up 11.3% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EBITDA guidance missing analysts’ expectations.
The RealReal delivered the weakest full-year guidance update in the group. The company reported 985,000 users, up 157% year on year. As expected, the stock is down 20% since the results and currently trades at $5.84.
Read our full analysis of The RealReal’s results here.
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 $5.94 billion, up 37% year on year. This number topped analysts’ expectations by 8.1%. Overall, it was a strong quarter as it also put up a decent beat of analysts’ EBITDA estimates and impressive growth in its users.
The company reported 66.6 million daily active users, up 24.5% year on year. The stock is up 6.4% since reporting and currently trades at $2,416.
Read our full, actionable report on MercadoLibre here, it’s free.
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 $629.4 million, down 2.6% year on year. This print surpassed analysts’ expectations by 1.7%. More broadly, it was a slower quarter as it recorded full-year EBITDA guidance missing analysts’ expectations.
Teladoc had the slowest revenue growth among its peers. The company reported 102.5 million users, up 11.7% year on year. The stock is up 12.4% since reporting and currently trades at $8.05.
Read our full, actionable report on Teladoc 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.
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