HomeMarket NewsWork-from-Home Stocks Thriving in 2023

Work-from-Home Stocks Thriving in 2023

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Despite a tumultuous journey in 2023, work-from-home stocks are still showing resilience in our ever-evolving economy. The drastic shift to remote work during the pandemic led to over 60% of workdays being spent at home in 2020. In 2023, that number settled at 25%, firmly establishing this trend. With indications pointing towards a continuation or potential increase in remote work, this represents a significant fivefold surge from pre-pandemic levels in 2019.

Companies in the work-from-home sector provide tools, technologies, and services that support and enhance the remote work experience. While some of these stocks have dipped from their peak values as global conditions normalize, they continue to hold strong growth prospects. This is particularly evident as employment patterns undergo transformation, signaling a long-term adoption of remote work.

Apple (AAPL) – Pioneering the Work-from-Home Revolution

Apple logo on a pink and purple background. AAPL stock.

Source: Moab Republic / Shutterstock

Apple (NASDAQ:AAPL) stands on the brink of achieving an unparalleled market capitalization milestone of $4 trillion next year, partly propelled by the popularity of its work-from-home products. The tech giant’s foray into augmented reality (AR) in the workplace has the potential to further accelerate its growth trajectory. Apple’s Vision Pro headsets, despite a hefty price tag of $3,499, have already made significant waves with approximately 200,000 units sold. This initial success is poised to drive further sales as the product showcases its value in a work-from-home setting and achieves economies of scale, reducing production costs.

There are concerns that the Vision Pro line may cannibalize sales of other Apple staples, particularly iPads and tablets, which are already experiencing a decline. Apple finds itself at a critical juncture, balancing the stabilization of Vision Pro sales while gauging the long-term viability of its AR technology. This product could be a mere fad or transform the work landscape similar to the revolutionary impact of the iPod in the early 2000s. Regardless of the outcome, Apple holds the mantle of being the top AR stock, offering investors a gateway to this emerging market through a trusted blue-chip entity.

Steelcase (SCS) – Sitting Comfortably in the Remote Work Era

An image of a smartphone displaying the text

Source: IgorGolovniov / Shutterstock.com

Prolonged sedentary hours at a desk can be as harmful to health as smoking, according to some researchers, underscoring the importance of movement. While the validity of this comparison remains debatable, the consensus is clear: remaining active is crucial. However, in the work-from-home landscape, sitting is often inevitable. Steelcase (NYSE:SCS) stands out for its premium, high-quality office furnishings tailored for corporate setups. Whether outfitting cubicles or conference rooms, Steelcase is the go-to choice for top-tier seating solutions, essential for enhancing the home office experience during the rise of remote work.

Despite facing challenges over the past five years due to the shift towards remote work and rising interest rates necessitating cost-cutting measures, Steelcase remains a compelling option for investors seeking opportunities in the remote work domain. With a potential pivot towards catering directly to the burgeoning home office market, Steelcase could prove to be a lucrative under-the-radar investment.

Upwork (UPWK) – Empowering the Freelancing Revolution

upwork (UPWK) logo on a building

Source: Sundry Photography / Shutterstock.com

As remote work expands, many individuals are turning to freelancing for supplemental income or even transitioning to full-time freelance careers. Upwork (NASDAQ:UPWK) is strategically positioned to capitalize on this trend, thanks to its dominance in the freelancer/client marketplace, commanding over 50% of the total market share. With a clientele that typically offers higher pay rates compared to platforms like Fiverr International (NYSE:FVRR), Upwork has established itself as a leading player in the freelance industry.

Despite occasional user frustrations with Upwork’s policies and decisions, the company has showcased agility in adapting to the evolving economic landscape, achieving profitability milestones to sustain its operations. Upwork’s recent earnings report revealed its third-ever profitable quarter, surpassing analyst expectations with a $0.20 EPS. Moreover, the consistent gross service volume since early 2021 underscores the resilience of Upwork’s business model in challenging economic environments.

The key challenge facing Upwork lies in expanding its enterprise client base, with growth in this segment witnessing a slowdown. This trend could be attributed to larger corporations trimming freelance budgets or opting to hire talent internally. However, by refining its enterprise services to attract and retain corporate clients effectively, Upwork has a significant growth runway awaiting.

On the date of publication, Jeremy Flint had no positions in the mentioned securities. The views expressed in this article are solely those of the author and do not necessarily reflect the views of Nasdaq, Inc.

Jeremy Flint, an MBA graduate and proficient finance writer, specializes in content strategy for wealth managers and investment funds. His passion for simplifying intricate market concepts focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. For more of Jeremy’s work, visit www.jeremyflint.work.

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The opinions expressed herein are solely those of the author and do not necessarily reflect the views or opinions of Nasdaq, Inc.

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