© Reuters. Should You Buy the Dip in Fiverr?
Israel-based online marketplace for freelance services, Fiverr (FVRR), saw its share price dip nearly 26% following the company’s disappointing second-quarter earnings results. However, can the company (and its stock price) rebound by its leveraging of its new products and services? Let’s find out.Headquartered in Tel Aviv, Israel, Fiverr International Ltd . (NYSE:) is known for its platform connecting businesses with freelancers that offer digital services in more than 200 categories. The company launched Seller Plus on August 12—a subscription-based loyalty program for freelancers—and launched its first new vertical dedicated to services related to data in March.
Because the number of people performing freelance services is increasing worldwide, Fiverr is well-positioned to benefit.
However, the stock has lost 26.4% over the past month and 46.7% over the past six months to close yesterday’s trading session at $172.08. Furthermore, it has declined 25.8% in price since reporting disappointing second-quarter earnings results on August 5. In addition, FVRR’s withdrawal of its proposed public offering of ordinary shares in March 2021 was not well received by investors, and hedge fund sentiment has declined considerably recently. So, FVRR’s near-term prospects look bleak.