FVRR - 1 Beaten-Down Stock to Buy and Hold for 10 Years
2024-04-26 06:00:00 ET
Fiverr International (NYSE: FVRR) chose an interesting time to become a publicly traded company. The online marketplace for freelancers started trading in mid-2019, about nine months before the official start of the COVID-19 pandemic. The outbreak created strong demand for Fiverr's services, leading to its share price soaring in 2020 and early 2021. However, the company has been southbound pretty much since. Still, there are good reasons to invest in Fiverr's stock, especially for investors whose time horizon extends to five years and beyond. Let's consider some of those reasons.
Fiverr experienced at least two significant issues once its pandemic-related boom came to a screeching halt. First, top-line growth slowed considerably. Second, it remained deeply unprofitable. Even in a normal environment that's a bad combination for any company. Fiverr could have pursued a "growth at all costs" strategy, pouring money into efforts to improve revenue growth without caring about what these initiatives would do to the bottom line.
However, management went in a different direction. Fiverr opted for a more disciplined approach, choosing instead to carefully manage and even cut expenses and costs. As a result, the company turned in an annual net profit in 2023 -- a first in its relatively short tenure as a publicly traded company. Fiverr's net earnings per share last year was $0.09, compared to a net loss per share of $1.94 reported in 2022.
For further details see:
1 Beaten-Down Stock to Buy and Hold for 10 Years