2024-03-31 04:07:09 ET
Summary
- Fiverr's stock has dropped 20% this year due to slower growth rates and increasing risks from AI.
- The company's active buyer base is shrinking, and AI tools are reducing the need for "simple services" on the platform.
- Fiverr faces competition from other freelance marketplaces and may struggle to compete in the long run.
- The only draw to this company is value, as it trades at a <8x forward adjusted EBITDA multiple. This isn't enough to compensate for long-term existential risks, however.
So far in 2024, the market has proven to be a "winner take all" game. Though the S&P 500 is sitting at all time highs, that growth has been driven by AI stocks - while many less prominent companies have conversely seen dramatic declines in share price....
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Fiverr: Getting Cheaper, But Not Cheap Enough To Justify Risks