Fiverr: Undervalued Amid The Growing AI-Powered Freelance Economy


  • Cash is now a competitive asset, and rising interest rates are causing companies to focus on reducing debt and increasing profit margins.
  • Fiverr, a growth firm, has seen its value decline due to a decline in sales growth, but its focus on higher profit margins is more critical today.
  • Fiverr faces potential competitive threats and risks from AI, but its dominance in the freelancer marketplace may secure its position.
  • AI may be a significant net benefit for the company as it creates more freelance job opportunities that it renders obsolete.
  • With excellent growth potential, a healthy balance sheet, and a forward P/E below 10X, FVRR is among my favorite GARP stocks today.
Woman working from home in her garden

Gary Yeowell/DigitalVision via Getty Images

Since the rise in interest rates in 2022, a key factor has shifted in financial markets: cash is now worth something. Cash is a competitive asset, offering over 5% risk-free when many riskier bonds and dividend stocks hardly pay more. Before 2022, ultra-low rates encouraged companies to

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in FVRR over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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