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Since I last wrote about Fiverr (NYSE: NYSE:FVRR) last November, the stock has only gained around 9%, which has underperformed the 28.83% returns of the S&P 500.
The primary reason that Fiverr has underperformed the market
Fiverr: Buy This High-Quality Business
Summary
- The primary reason that Fiverr has underperformed the market recently is a combination of slowing growth and a high valuation.
- The online freelancer market which Fiverr serves is a large opportunity with low penetration.
- The Fiverr platform is a two-sided marketplace that has established a double-sided network effect moat.
- The company has shown both high growth and operating leverage in the latest quarter.
- While Fiverr might not be considered a "bargain", it is selling at a valuation that might be considered very enticing to long-term growth investors.
I have been a Merchant Seaman that has traveled the world for over 30 years. Within the last 15 years, I developed a very intense interest in investing. I learned a lot of what I know about investing from The MF. Also because I have a engineering background, I often tend to gravitate to Tech stocks
Analyst’s Disclosure:I/we have a beneficial long position in the shares of FVRR either through stock ownership, options, or other derivatives. 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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