Shares of Fiverr International (NYSE: FVRR) fell 6.7% in July 2022, according to data from S&P Global Market Intelligence . That was a significant drop in a month where the S&P 500 market index posted a gain of 9.1%. The stock was running neck and neck with the broader market through most of the month, stumbling on July 26 after the freelance marketplace operator announced a hefty round of layoffs. The stock closed 9.9% lower that day .
The company parted ways with 60 employees in late July, reducing its global workforce by roughly 8%. Management explained that Fiverr is adjusting its expenses to sudden changes in the macroeconomic picture. Later, executives said that economic headwinds were worse than expected and it seemed prudent to pump the brakes on Fiverr's ambition to deliver skyrocketing growth "at any cost."
Investors took this pullback from extreme growth ambitions as a bad sign for Fiverr's long-term prospects.
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Why Fiverr International Shares Lost 7% Last Month