Anthropic’s latest enterprise AI tools, pitched as replacements for repetitive software-driven work, sent a fresh jolt through software names. Upwork (UPWK) experienced sharp intraday volatility as investors reassessed automation risk.

The Anthropic news hit during a choppy period for Upwork, with the share price at US$17.82 and a 7 day share price return of 15.22% and 30 day share price return of 12.09%. This contrasts with a 1 year total shareholder return of 13.0% and 3 year total shareholder return of 36.45%, suggesting recent momentum has cooled even though longer term holders have still seen gains.

If AI disruption is on your mind after Upwork’s move, it could be a good time to see what else is setting the pace in our screener of 56 profitable AI stocks that aren't just burning cash.

With Upwork trading at US$17.82, an indicated 34% discount to analyst targets and a 44% gap to one intrinsic value estimate, the key question is whether this is genuine mispricing or the market correctly sizing up future growth.

Most Popular Narrative: 25% Undervalued

With Upwork at $17.82 and the most followed fair value at $23.90, the active debate is how its AI and enterprise push feed into that gap.

Upwork's accelerated investment in AI-powered talent matching and workflow automation is already increasing average spend per contract and improving user experience for both clients and freelancers, providing a clear path to higher revenue and improved gross margins as these enhancements scale.

Curious what kind of growth path connects today’s earnings, measured revenue expansion and that higher future profit multiple implied in the fair value? The full narrative lays out the earnings curve, margin reset and valuation bridge that analysts are using to justify that price.

Result: Fair Value of $23.90 (UNDERVALUED)

However, the story could look very different if client growth stays sluggish or AI driven shifts reduce project volumes in key categories on the platform.

Build Your Own Upwork Narrative

If you see the numbers differently or want to stress test your own assumptions against the same data in just a few minutes, you can build a version that reflects your view and Do it your way.

A great starting point for your Upwork research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

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• Target potential mispricings by checking companies our screener flags as 55 high quality undervalued stocks that pair quality fundamentals with prices the market may be discounting.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.