FVRR - Why Fiverr Stock Dropped 12% Last Month
2023-04-07 12:38:44 ET
Shares of freelance marketplace Fiverr International (NYSE: FVRR) fell 11.8% in March, according to data provided by S&P Global Market Intelligence . The drop is somewhat surprising, considering the S&P 500 was up 3.5% for the month. And for Fiverr's part, it was extremely quiet, with no clear reason for the underperformance. Could that make the pullback in March a buying opportunity?
Fiverr reported financial results back on Feb. 22. And analysts released their thoughts about them at that time, with much of the commentary being bullish. Consequently, Fiverr stock was up 36% from the start of 2023 through the end of February. So perhaps some investors took advantage of these strong gains and took some profits during March, leading to its underperformance.
Investors also appear increasingly worried about Fiverr's long-term business prospects, especially with the rise of generative artificial intelligence (AI) applications. The thinking is that AI could do some of the freelance tasks available on Fiverr's marketplace.
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Why Fiverr Stock Dropped 12% Last Month