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Suruhanjaya Sekurity Bank Negara Malaysia
Regulated by
Suruhanjaya Sekurity Bank Negara Malaysia

Is Fiverr Worth Looking At After A Major Selldown?

Summary: Fiverr (NYSE:FVRR) was one of the most popular stocks of 2021. In February, the freelancing marketplace was up more than 60% year to date (YTD), reaching $336 per share. However, the stock has subsequently sunk and is currently down over 50% from its all-time highs. Is it still worth looking at?

 

Fiverr Main

There have been some interesting developments which came out this past few weeks with the pandemic ending whereby millions of Americans despite being able to be re-employed have begun to shun their jobs. As many are puzzled with these developments, some analysts have begun to forecast that this trend will continue in years to come. So in this article, we will try to answer this question and give you possible investment ideas.

During the recent pandemic which saw many companies laying off staff, those being affected had to be open to alternative employment channels. In Malaysia we could see many joining the Gig Economy either being a Foodpanda Rider or a Grab Driver or Rider. Aside from these jobs, some have opted to be freelancers doing part-time accounting work, part time HR work or part time design work. 

Having said that, this trend has not only been prevalent in Malaysia but globally as many are facing the same issues during this time. So much so, even the World Economic Forum released an article on the web showing these interesting statistics :

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Source: World Economic Forum

So with this trend picking up pace, many freelancing companies saw an increase in  demand in their services, which among them includes Fiverr International (NYSE:FVRR). Below are some numbers shown by this company during its quarterly earnings.

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 Source: Fiverr Quarterly Earnings

From the chart above we could see that revenues of this company almost doubled between its 2Q20 earnings to its 2Q21 earnings from $47.1 million to $75.3 million. Aside from that we can see another set of promising numbers which is Fiverr margins improving tremendously during this period (note that most tech stocks in its infancy tend to report losses)

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Source: Fiverr Quarterly Earnings

So despite a drop in its share price with the pandemic slowly clearing up, the movement of the labour force into the Gig Economy looks likely to stay and grow in the coming years. So the question is, “Could the recent drop in share price be a good buying opportunity in this stock ?”

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Source: Google 

Begin investing now.