CARG) And The Rest Of The Online Marketplace Stocks

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the online marketplace stocks, including CarGurus (NASDAQ:CARG) and its peers.

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 12 online marketplace stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 1.8% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.4% 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 $251 million, up 13.1% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

“We delivered strong second-quarter results, with 13% year-over-year revenue growth and continued momentum in our International business,” said Jason Trevisan, Chief Executive Officer at CarGurus.

Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 4.8% since reporting and currently trades at $34.63.

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

Best Q2: Sea (NYSE:SE)

Founded in 2009 and a publicly traded company since 2017, Sea (NYSE:SE) started as a gaming platform and has since expanded to offer a variety of services such as e-commerce, digital payments, and financial services across Southeast Asia.

Sea reported revenues of $7.81 billion, up 45.7% year on year, outperforming analysts’ expectations by 8.3%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and solid growth in its users.

Sea pulled off the biggest analyst estimate beat in the group. The company reported 68.1 million users, up 10.2% year on year. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 14.1% since…