Home Sports Why I’m set on Airtasker’s stock price (ASX: ART).

Why I’m set on Airtasker’s stock price (ASX: ART).

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I think so Airtasker Ltd (ASX: ART) stock price has great growth potential in the long run.

If you haven’t heard of Airtasker before, this is the company that owns and operates the platform / site. People who need work can post tasks on Airtasker, and then people who want to do the job can offer to do it.

Here you can perform a lot of different types of work, including furniture assembly, cleaning, administration, accounting, delivery, website design, etc.

I think there are a lot of things in business that will appeal to Airtasker’s current share price, but here are three of them:

World address market

Airtasker may have started in Australia, but is now rapidly expanding in the US and the UK, although starting with a small base in the two countries.

One of the interesting things about long-term investments is that they have a very long runway that you can grow into. A business that can grow rapidly in 10 or 15 years is more likely to be successful than a business that has only a few years of good potential ahead.

Only the US and the UK are attractive markets. But in the long run the company could expand to many other countries such as Canada, European countries, South Africa, etc.

High gross profit margin

Not many businesses can achieve a gross profit of more than 80%. One of them on ASX Xero Limited (ASX: XRO).

But Airtasker’s gross profit is over 90%. As the business adds more revenue, it basically turns into gross profit that Airtasker can use to spend on whatever it wants. The increase in size will be good news for the company’s profitability.

I think the high margin will eventually be very helpful for Airtasker’s stock price.

У the first half of 22 f.g.Airtasker’s gross profit margin was 93%.

Strong reinvestments

Airtasker is not looking to make big profits in the short term. It reinvests most / all of its profits in further growth. This makes a lot of sense for at least two reasons.

First, Airtasker can target a huge market. This can spend very significant funds on marketing in the US and the UK, and it should cost a growing advertising budget. It also needs to build its staff teams, have the right “infrastructure” for global business and so on. Airtasker will not “spend” money if it continues to reinvest.

Second, he does not lose part of his cash flow to taxation until he makes a profit. Obviously, taxes are important to society. But a company can operate close to break-even and thus increase shareholder value.

Recent thoughts on Airtasker’s stock price

Airtasker’s stock price has fallen nearly 50% in the past six months. Painful drop. But I don’t think the current assessment reflects the significant potential that the company has. Inflation can help increase revenue if the cost of jobs on the site rises.

Airtasker is one of my favorites ASX shares are rising for the next few years.

https://www.raskmedia.com.au/2022/04/19/why-im-bullish-about-the-airtasker-asxart-share-price/

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