Online marketplace Freelancer Ltd (ASX: FLN) is one of the most ambitious early-stage tech businesses trading on the ASX and today the stock climbed 14.6% to $1.06, despite the company releasing no news to the market.
One reason that Freelancer may have received investor support is that it has taken to posting the research notes of investment analysts to the ASX. This is a fact and a logical interpretation of it is that the company wished to promote the content of the research note.
These kind of research notes also contain important legal disclosures, enshrined in law and designed to protect investors.
Can Freelancer make it big?
Nonetheless, Freelancer is a moderately fast-growing business in an online growth sector. The business earns revenue by acting as a global marketplace for individuals or businesses to outsource skilled and non-skilled service-sector tasks to its global army of available freelancers.
A lot of the outsourced work contracted is based around web design and development, data entry, writing, (SEO) marketing and general other IT services small businesses or individuals may require on a cost effective basis.
Given the company's global growth potential the stock is volatile and sits on a big valuation, with investors unable to decide if Freelancer really is the next online juggernaut or not. At today's price it is ascribed a market value around $400 million.
The company posted a small loss in the last financial year, while growing revenues 39% over the prior corresponding year to $26.1 million.
An ambitious role model for Freelancer is online jobs phenomenon SEEK Limited (ASX: SEK), which is valued around 15x higher at around $6 billion and continues to grow at a rapid rate having only been in existence for 17 years.
Freelancer is only five years old and growing fast, so if you're a Freelancer believer today's price would seem a gift if it can deliver on its huge potential.
Prudent investors may be best off monitoring this growth story from the sidelines for now though, as any sign of weakness and the stock price could come crashing down.
