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Buy Fiverr shares after Q1 results?
Fiverr International Ltd. (FVRR) is a leading online marketplace that connects businesses with freelancers offering digital services. The company has been growing rapidly, with revenue increasing by 77% year-over-year in Q4 2020. As Fiverr prepares to release its Q1 2021 results, many investors are wondering whether it’s a good time to buy Fiverr shares.
Fiverr’s Q1 2021 results are expected to be released on May 6, 2021. Analysts are predicting that the company will report revenue of $68.5 million, which would represent a 60% increase year-over-year. Fiverr’s gross merchandise value (GMV) is also expected to increase by 60% year-over-year to $277 million.
These impressive growth figures are a testament to Fiverr’s ability to capitalize on the growing trend of remote work and the gig economy. As more businesses shift to online operations, the demand for digital services is only going to increase. Fiverr’s platform offers a wide range of services, including graphic design, writing, programming, and marketing, making it a one-stop-shop for businesses looking to outsource their digital needs.
Investors who are considering buying Fiverr shares after the Q1 results should also take into account the company’s financials. Fiverr has a strong balance sheet, with $317 million in cash and no debt as of December 31, 2020. The company’s net loss in Q4 2020 was $0.7 million, which was a significant improvement from the net loss of $8.4 million in Q4 2019.
Fiverr’s stock price has been on a rollercoaster ride since its IPO in June 2019. The stock initially surged to over $44 per share before dropping to a low of $18 per share in March 2020. Since then, the stock has been on an upward trajectory, reaching a high of $336 per share in February 2021. As of April 30, 2021, Fiverr’s stock price is hovering around $200 per share.
So, should investors buy Fiverr shares after the Q1 results? While there are no guarantees in the stock market, Fiverr’s strong growth and financials make it an attractive investment opportunity. The company’s ability to capitalize on the growing trend of remote work and the gig economy is a major advantage, and its platform offers a wide range of services that businesses need.
Investors should also keep in mind that Fiverr’s stock price is volatile and can be affected by a variety of factors, including market conditions and competition. However, for those who are willing to take on some risk, Fiverr’s potential for growth and profitability make it a compelling investment opportunity.