Bargain stocks abound right now, but there's more than price for investors to consider before taking the plunge. In this segment of Backstage Pass, recorded on Jan. 10, Fool.com contributors Rachel Warren and Jason Hall, joined by Fool.com Canada senior analyst Jim Gillies, discuss one cheaper-than-usual stock for investors to consider buying right now and one that long-term investors should avoid at all costs.
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Rachel Warren The reason I like this company is I think it's very much playing into the trends in the workforce we're seeing right now that are not going anywhere. These are permanent trends. More and more people are taking control of the way that they want to work and how they want to work and where they want to work. A platform like Fiverr (FVRR 3.06%) offers them the opportunity to connect with businesses, with individuals that need whatever freelance services or service they provide and be able to do that from anywhere.
That's why I like this business. One of the things that's really interesting, that I also like about Fiverr is it regularly releases reports about the overall state of the freelance industry, which of course very much correlates to how its platform grows.
One of its recent reports that it had out in December was saying that 54% of hiring managers and HR professionals say many employees leaving their companies are choosing to work for themselves, 30% of respondents said that people are leaving their jobs more now than pre-COVID because they want more flexibility, 46% said that at their companies managers and directors are leaving more than entry-level employees, and 56% of those who have seen employees leave in the last six months, said that the people leaving their companies are between 36 and 45.
It's not just super young millennials or gens years that are quitting their jobs. We're seeing this across all age groups. Fiverr has done really well. It's continuing to really grow its platform and retain new and existing freelancers.
It's an interesting company to look into from a business perspective. Maybe I'll get a chance to buy it during the next few weeks if I can stop talking about it.
One, I wouldn't buy, probably get some heat for this, but even if someone else gave me the money, I wouldn't buy it.
Jim Gillies: Not from me, [laughs] I know where you're going with this.
Rachel Warren: I wouldn't buy AMC (AMC -1.47%). I'm sorry, I just wouldn't.
Jason Hall: You have no reason to be sorry for that, be unapologetic.
Jim Gillies: Why would you get hate for that?
Rachel Warren: From the memers maybe.
Jim Gillies: Well, they can't do math anyway so it's fine.
Rachel Warren: Well there's that, but yeah, I don't care. [laughs] AMC I guess is down nearly 50% over the last six months, so I guess some of the hype from the meme stock lords has retracted a little bit.
It's just not one for me, it doesn't have a great balance sheet. It hasn't for a long time. I feel bad for the company. The industry is operating and were struggling before the pandemic. I think the pandemic's just accelerated that. I don't know, maybe meme investors will get interested again in 2022. But even if they were, I'm staying far away from this one.
Jason Hall: It doesn't matter. I don't feel sorry for anybody in this, Rachel, except for a few. I feel sorry for newer investors who've gotten sucked into it, in the idea that this is a path to wealth. I feel sorry for those people who get bilked and a lot of them are still holding the bag, because they are the ones that get flipped.
They are the ones that get stuck with this. It's a crappy industry, it's a mediocre business, and frankly, the only thing that's kept them around is the fact that the stock went to the moon and they were able to sell some equity and raise capital, but they still have a crappy balance sheet. Jim, I know you want to say something about this.
Jim Gillies: I am someone who publicly recommended GameStop a hell of a lot lower than it is today.
Rachel Warren: Wow.
Jason Hall: Different story, Jim.
Jim Gillies: Different story. Rachel, you and I will talk later.
Rachel Warren: I want to hear this.
Jim Gillies: I wrecked it at nine bucks and I was pounding [laughs] the table internally at five. When it got over 100, I'm like, we're out.
Because meme stocks or death, and anyone who is chasing AMC right now, to quote the eminently quotable Bill Mann, second time I've mentioned him today, his ears are burning. "They are going to learn a lesson they can learn no other way." I am 100% on team Rachel for the AMC avoidance.