Please ensure Javascript is enabled for purposes of website accessibility

Why Fiverr Stock Is Soaring Today

By Keith Speights - Updated Mar 9, 2021 at 11:19AM

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

A rising tide is lifting all boats.

What happened

Shares of Fiverr International (FVRR -0.95%) were soaring 12.3% as of 11:07 a.m. EST on Tuesday. The company, which operates a platform that connects freelancers with buyers of digital services, didn't announce any news. Instead, the big gain for Fiverr stock stemmed from an overall rebound for the stock market.

So what

Stock market volatility works both ways for investors. Major sell-offs can be followed -- sometimes very quickly -- by major uptrends. That's what we're seeing with Fiverr today.

The primary reason behind the overall market rise is the likelihood that a $1.9 trillion stimulus bill will be signed into law later this week. Good news for the U.S. economy should translate into good news for Fiverr. 

Woman at her desk typing on her laptop

Image source: Getty Images.

Even with today's jump, Fiverr's shares are still more than 30% below the highs set in early February. Some investors were worried that Microsoft's planned launch of a new LinkedIn service for freelancers could hurt Fiverr.

But the potential market for freelancing platforms should be big enough to support multiple winners. Fiverr appears to be in a good position to be one of those winners.

Now what

Fiverr recently withdrew its planned follow-on public stock offering of $700 million in shares. The company stated that the prevailing market conditions created an environment that wasn't optimal for raising equity capital. If today's rebound continues, look for Fiverr to probably move forward with its original plans.

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.
FVRR
$38.56 (-0.95%) $0.37
Microsoft Corporation Stock Quote
Microsoft Corporation
MSFT
$260.65 (3.20%) $8.09

*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 service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/23/2022.

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.