FVRR - Could Fiverr International Become the Next Amazon?
2024-02-20 06:05:00 ET
Fiverr International (NYSE: FVRR) was one of the hottest growth stocks of 2020 and 2021. The Israel-based gig economy marketplace's shares closed at a record high of $323.10 on Feb. 12, 2021 -- up by a whopping 1,439% from its IPO price of $21 on June 19, 2019.
At the time, Fiverr's business was firing on all cylinders as the pandemic drove more companies to make use of remote freelance workers. But its growth pace cooled off as the pandemic's social-distancing phase passed, and the macroeconomic headwinds of the past two years drove many companies to rein in their spending on freelancers.
Fiverr bears also claimed that generative artificial intelligence tools like ChatGPT could reduce the market's long-term demand for freelance workers in certain fields, and rising interest rates popped the company's bubbly valuation.
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Could Fiverr International Become the Next Amazon?