Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Fiverr International Shares Rose 15% in September

By Anders Bylund – Oct 6, 2020 at 1:08PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The freelancer marketplace launched a rebranding campaign and continued its long run of skyrocketing market momentum.

What happened

Shares of Fiverr International (FVRR 0.43%) gained 15.2% in September 2020, according to data from S&P Global Market Intelligence. The gains hinged on a well-received launch of a marketing campaign for the Fiverr brand itself.

So what

The freelancing marketplace started a new branding campaign on September 8, unlocking a 16% share-price jump in two days. Under the banner of "It Starts Here," the campaign highlights three small businesses that have used Fiverr's freelancers to find success in a difficult COVID-19 market environment. The program is supported by short-form video spots across social media services, media-streaming channels, and national TV ads. Fiverr also adopted a new logo and other visual representations of the brand, all of which were embraced by investors and Fiverr users alike.

A digital rocket icon takes off from an outstretched hand.

Image source: Getty Images.

Now what

The company also introduced Fiverr Business in September, but the launch of a team-based collaboration platform hardly moved the stock price at all. This project may be more important than the branding campaign in the long run, but that's not how Mr. Market saw it in September.

All told, Fiverr's investors have pocketed a 572% gain in 2020. Wall Street is struggling to find a proper valuation for this high-octane growth stock whose second-quarter sales increased by 82% year over year, while generally accepted accounting principles (GAAP) earnings were written in red ink. You should expect Fiverr's stock to show plenty of volatility over the next few years as the company continues to optimize its business plan for maximal top-line growth, leaving sustainable profits for some later period several years down the road.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Fiverr International. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Fiverr International Ltd. Stock Quote
Fiverr International Ltd.
$30.59 (0.43%) $0.13

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.