Down 54%, Is Fiverr Stock a Smart Buy Right Now?
Last year, pandemic-driven business closures led displaced workers to explore alternative means of employment, and many tried their hand at freelance jobs. Likewise, some remote workers found themselves with more free time, so they tapped the gig economy for supplemental income.
That made Fiverr International (NYSE: FVRR) popular with investors, and its share price skyrocketed 730% in 2020. But after peaking in mid-February, Fiverr stock has fallen sharply, and it currently trades 54% below its all-time high. In hindsight, that pullback isn't so surprising. In February 2021, Fiverr stock achieved an astronomical valuation of 56 times sales -- nearly 10 times higher than its price-to-sales ratio prior to the pandemic. Since then, a combination of analyst downgrades and weak guidance (relative to Wall Street's expectations) have conspired to bring the stock price down.
So is now a good time to buy Fiverr stock? Here's what you should know
Source Fool.com
