In this video, I'll raise some points as to why Fiverr (NYSE:FVRR) is a must-have for a long-term portfolio (high growth, high valuation) -- yes, even post-pandemic this company will thrive.
What does Fiverr do?
Fiverr is a platform that allows freelancers to offer their services online. So instead of going through an agency or looking for someone on LinkedIn, you go on Fiverr and find someone who can handle your project (small or big). The name Fiverr comes from the fact that when they started, everything cost $5. Now you can find gigs for over $1K.
A $100 billion yearly market
Fiverr's management estimates that the company's addressable freelancer market is worth more than $100 billion per year, and the market itself is expanding rapidly (big push thanks to the pandemic). And we can see that accelerated growth in its last couple of quarters, but we'll take a quick look at its recent Q4.
Worth the premium
Yes, right now the stock is expensive, and the company may seem small (at a market cap just short of $8b), but it is making moves. It acquired freelance creative network Working Not Working (which sources freelance creatives for the likes of Google, Netflix, Spotify), and it's expanding internationally as well.
To me it is very clear the world is moving to digital. The pandemic has just accelerated that move. More people will be working remotely in the future, and lots of companies will use freelancers and contractors for gigs. Fiverr is perfectly positioned to ride this wave out. Though there are competitors out there such as Upwork or even Wix (stay tuned for the next video) or LinkedIn, if Microsoft does what it can to salvage that platform.
*Stock prices used were the closing prices of April 6, 2021. The video was published on April 8, 2021.