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For the most part, many companies have disappointed so far in the Q2 earnings season, but a lot of small and mid-cap companies have managed to buck the recent volatility. Fiverr (NYSE:FVRR) is one
Fiverr: The Post-Earnings Rally Will Be Short-Lived
Summary
- Fiverr stock surged 20% after Q2 results, despite only slightly raising its full-year outlook.
- The company does offer a cheap valuation, but that's a reflection of slowing growth and nascent risks from the increased AI-driven automation of tasks often assigned to freelancers.
- The company's active buyer base continues to decline, and given Fiverr's exposure to the SMB segment, this trend is set to continue.
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.
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