Fiverr a stock of the future?
When the market is down big sit back and do your research to find the opportunities. Here is the breakdown on $FVRR otherwise known as Fiverr.
Current Price: $112.17
52/Wk High: $127.32
52/Wk Low: $17.11
Read below for the breakdown.
Fiverr is an online platform in which connects freelancers to businesses. Most of these freelancers specialize in digital services such as graphic design, marketing, and much more.
Fiverr currently has over 200 categories of work and offers services in more than 160 countries worldwide.
The overall thesis on the company as of late within the market is simple. Due to COVID-19 and the outgrowth of the digital age, experts in digital services will be in high demand and Fiverr should benefit from that trend.
Digging into the numbers Fiverr reported a solid Q2 beat, the first since its Q2 2019 IPO. $FVRR reported an EPS of $0.10 versus the expected EPS consensus of $-0.06.
Not only that but revenues also came in significantly higher for Q2, totaling $47.1 million.
Exploring the balance sheet also revealed Fiverr’s financial standing. When last reported $FVRR had a total debt of $6.115 million.
On the otherhand, Fiverr has built up a solid amount of cash on hand. When last reported Fiverr’s cash on hand level was $286 million.
Moving into the forecast for Q3, management expects strong results. $FVRR management expects Q3 revenues of $48.0 million to $49.0 million which is roughly 72% to 76% YOY growth.
Fiverr also raised full-year guidance on revenue to a range of $177.5 million to $179.5 million which represents 66% to 68% YOY growth.
Moving onto the analysts, the so-called experts are seemingly very bullish. Currently, the high price target is $127.14/share, representing a 17.02% gain.
Not only that but the high price target is $155.00/share, representing a 42.66% upside and the low price target is $77.00/share, representing a -29.13% downside.
On the otherhand, the big money still seems to be unsure about $FVRR. Currently, 57.65% of $FVRR is owned by institutions. Top holders include Accel London Management, Bessemer Venture Partners, and the Franklin DynaTech Fund.
Moving into the charts after the markets major pullback in which started Thursday it seems $FVRR could be flashing an opportunity.
Currently, the 6-month RSI sits at 50.77 which is not amazing but simply based on RSI would not be a bad place to start a position. On the otherhand, as we all know RSI is not everything.
Taking a closer look, the 6-month MACD seems to be forming some downward momentum and is currently sitting at 6.79 to 6.70.
Not only that but the CCI sits at -40.44 on the 6-month and the stock trades just over 15 points from the highs.
In short, the technicals show that a further dip could be on the way, which could be the buying opportunity, but now is not a bad time simply based on fundamentals.
It is also important to note that Fiverr stock currently trades at a price to sales ratio of 29.52x and sits at a $3.9 billion market cap.
Overall I like $FVRR long term and think the platform is one of the future. In the near term, I believe shares could be picked up cheaper than the current price point, but entering a position now would not be bad, simply use a close stop for protection.
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Disclaimer: This is not direct financial advice, simply opinion based on independent research. Luke Donay and Running With The Money are not responsible for any investment decision made based on presented information.