Why the Freelancer (ASX:FLN) share price rocketed 31%


The Freelancer (ASX: FLN) share price soared 31% higher on Friday after announcing a partnership with eBay.

What is Freelancer?

Freelancer operates the world’s largest freelancing and crowdsourcing marketplace by total number of users and jobs posted. Freelancer also operates a large escrow or secure online payment service called escrow.com.

Why did the share price jump?

The company announced that eBay Motors has partnered with Escrow.com to give buyers added security when trading used vehicles and vehicle parts online.

Escrow.com is integrated into both the eBay Motors website and the mobile app. Users can select the digital payment option for both the website and new eBay Motors app which launched in December 2019.

With Escrow.com as the chosen payment method, funds are held safely in escrow while the vehicle is tracked and delivery is verified. Once the vehicle arrives and is accepted by the buyer, the transaction is closed out and the seller receives the proceeds of the sale, securely via Escrow.com. If there is an issue with the purchase, the vehicle can be returned to the seller and the funds are returned to the buyer.

Buyers can inspect vehicles before the funds are sent to sellers to ensure vehicles are as described in the listing and protects buyers from fraud. This makes it easier to transact over long distances. The first transaction was for a car sold in California to a buyer in New Hampshire, a distance of 3,000 miles.

Summary

It’s an operational offering to eBay users which will be changing consumer behaviour and coupled with an education campaign. Freelancer is unable to forecast the revenue impact. But the market seemed to really like it and it could lead to a good increase in volume for Freelancer.

I’m not sure if it’s a buy, the price has already rocketed – the company has a lot of promise but COVID-19 may have sent the company’s trajectory back for a while.

3 stocks to own in July 2020…

Amidst the COVID-19 confusion, there are some companies still growing FAST (think: online meetings through Zoom, streaming companies like Netflix and eHealth services provided by Teledoc).

While the world grapples with COVID-19, some companies are still growing rapidly. The entire cloud computing market is valued around $US210 billion but if you ask me, it seems clear as day that this market is only going to get bigger in 2020 and beyond.

That’s why our top investment analyst has just identified 3 growth stocks in a net cash position, with strong competitive forces… and obvious tailwinds at their back. He owns all three of them right now!

Claim a FREE investing report on our analyst’s “3 best share ideas for the cloud revolution” when you create a free Rask Australia account.

Our report is 100% free and unlocks hundreds of hours of bonus content.

Simply click here to access the report.



At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.


Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *