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2 Stocks Benefiting From Businesses' Increasing Investments in Freelance Talent

By Jose Najarro - Jun 4, 2021 at 11:00AM

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Both these companies have seen strong revenue growth, and it doesn't seem as if that growth will be stopping anytime soon.

In today's video, I look at the stocks Fiverr International (FVRR -3.66%) and Upwork (UPWK -2.18%). Fiverr recently released research stating that more than 45% of US businesses have increased their investment in freelance talent since the COVID-19 pandemic began. Below I share a few reasons why investors should add these two companies to their watch lists.

Three reasons to add Fiverr to your watch list

  1. Fiverr reported 100% year-over-year (YOY) revenue growth and 56% YOY active buyers' growth for the first quarter of 2021.
  2. Fiverr has solid fundamentals for its trailing 12 months. It has positive cash flow from operations and has more cash and short-term investments than debt. 
  3. Future growth for Fiverr looks robust. The company reported guidance that shows 59% YOY revenue growth on the low end for the fiscal year of 2021. 

Three reasons to add Upwork to your watch list

  1. Upwork reported 37% year-over-year (YOY) revenue growth and gross margins of 73% for the first quarter of 2021.
  2. Upwork has solid fundamentals for its trailing 12 months. It has positive cash flow from operations and substantially more cash and short-term investments than debt. 
  3. In the past few weeks, Upwork has released new products to improve its freelancing marketplace. 

Click the video below for my full thoughts. 

*Stock prices used were the closing prices of June 3, 2021. The video was published on June 3, 2021. 

Jose Najarro owns shares of Fiverr International and Upwork. The Motley Fool owns shares of and recommends Fiverr International. The Motley Fool recommends Upwork. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Stocks Mentioned

Upwork Inc. Stock Quote
Upwork Inc.
$20.62 (-2.18%) $0.46
Fiverr International Ltd. Stock Quote
Fiverr International Ltd.
$41.02 (-3.66%) $-1.56

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

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