Jobs are becoming more and more specialized. This is a trend that has been lasting for thousands of years, and likely won’t stop anytime soon. Fiverr is a platform for buying and selling gigs, allowing for extreme specialization.
I think the market values Fiverr primarily on current numbers on growth. If we predict that the market will eventually blow up, this would likely lead to a growth acceleration of fiverr that the market might not have anticipated.
Small market cap (2.3 Billion USD) - Smaller businesses are less analysed by professionals, and therefore should in theory be easier to make good investments in.
Also, a small market cap means massive growth potential. If buying gigs become a massive industry, and big companies start creating systems for buying gigs. It seems possible for Fiverr to 10x-100x.
Many other platforms for buying and selling has market caps, ex: Airbnb ($103 billion), Uber (64$ billion)
Good numbers. Fiverr has a price-to-sales (PS) ratio of 8.1 (source). This is significantly better than Airbnb at 17.08 (source). For comparison, the S&P 500 has a PS ratio of 2.91, so if Fiverr were to just over double it’s revenue, it would be on par with the S&P.
Fiverr is a growth company, so I don’t understand why the market things it should have such a low PS ratio, but I’m sure it has it’s reasons. But the low PS ratio is still a good sign, since it proves that there seems to be fundamental value to invest in, and not just a good idea.
Profitable? It depends on how profit is measured (so no not really profitable), but at least it doesn’t seem like Fiverr is pumping out money like crazy, which suggests that the risk of going bankrupt isn’t super high.
Personal thoughts: While I do believe the EHM to be true. I expect cases like Bitcoin and potentially Fiverr, to be opportunities where we can predict massive growth, even if the odds are only a few percent, to be one of our best bets at beating the market. I might suggest diversifying the risk a bit by investing in some competitors too, like Upworks, but if I would only bet on one stock it would be Fiverr.
5. The current rating system isn’t particularly good, most people (including myself) gives 5 stars all the time unless something was wrong, so almost all sellers have like 5 or 4.9 stars. However it is possible that Fiverr can improve the rating system, to make it a much better predictor of how well a seller will be at performing a certain task. It could be a huge value add, since oftentimes the price and quality for consultancy services can vary hugely. Just look at video on youtube where they pay people on Fiverr to do stuff like edit videos, play instruments etc. The correlation between price and quality is quite low.
6. I have used Fiverr a lot, and in my experience the results has generally been better than other platforms.
Suggestion: Fiverr International Ltd.
Reasons:
Jobs are becoming more and more specialized. This is a trend that has been lasting for thousands of years, and likely won’t stop anytime soon. Fiverr is a platform for buying and selling gigs, allowing for extreme specialization.
I think the market values Fiverr primarily on current numbers on growth. If we predict that the market will eventually blow up, this would likely lead to a growth acceleration of fiverr that the market might not have anticipated.
Small market cap (2.3 Billion USD) - Smaller businesses are less analysed by professionals, and therefore should in theory be easier to make good investments in.
Also, a small market cap means massive growth potential. If buying gigs become a massive industry, and big companies start creating systems for buying gigs. It seems possible for Fiverr to 10x-100x.
Many other platforms for buying and selling has market caps, ex: Airbnb ($103 billion), Uber (64$ billion)
Good numbers. Fiverr has a price-to-sales (PS) ratio of 8.1 (source). This is significantly better than Airbnb at 17.08 (source). For comparison, the S&P 500 has a PS ratio of 2.91, so if Fiverr were to just over double it’s revenue, it would be on par with the S&P.
Fiverr is a growth company, so I don’t understand why the market things it should have such a low PS ratio, but I’m sure it has it’s reasons. But the low PS ratio is still a good sign, since it proves that there seems to be fundamental value to invest in, and not just a good idea.
Profitable? It depends on how profit is measured (so no not really profitable), but at least it doesn’t seem like Fiverr is pumping out money like crazy, which suggests that the risk of going bankrupt isn’t super high.
Personal thoughts: While I do believe the EHM to be true. I expect cases like Bitcoin and potentially Fiverr, to be opportunities where we can predict massive growth, even if the odds are only a few percent, to be one of our best bets at beating the market. I might suggest diversifying the risk a bit by investing in some competitors too, like Upworks, but if I would only bet on one stock it would be Fiverr.
5. The current rating system isn’t particularly good, most people (including myself) gives 5 stars all the time unless something was wrong, so almost all sellers have like 5 or 4.9 stars. However it is possible that Fiverr can improve the rating system, to make it a much better predictor of how well a seller will be at performing a certain task. It could be a huge value add, since oftentimes the price and quality for consultancy services can vary hugely. Just look at video on youtube where they pay people on Fiverr to do stuff like edit videos, play instruments etc. The correlation between price and quality is quite low.
6. I have used Fiverr a lot, and in my experience the results has generally been better than other platforms.