What happened
Shares of Fiverr (NYSE: FVRR) were surging 16.1% higher at 11:33 a.m. ET on Thursday on no apparent company-specific news for the gig economy stock.
After closing lower on Monday, Fiverr has rocketed to a better than 31% gain this week, with today's action being the best so far.
Image source: Getty Images.
So what
Even after the freelancing platform's recent performance, shares are still worth only about one-quarter of what investors were willing to pay for the stock one year ago. The market hasn't treated Fiverr very kindly since the economy reopened following the pandemic lockdowns, even though its business remains healthy otherwise.
Third-quarter revenue of $82.5 million was 11% higher than in the year-ago period, which itself was on top of a 42% gain at the time. In 2020, during the depths of the pandemic when workers were flocking to market themselves to businesses to earn money, Fiverr's revenue rocketed 88% above pre-pandemic levels.
So Fiverr has been able to maintain the gains it earned during a time that was a one-off event and has added onto it itself. That hardly seems to warrant the sort of decimation that visited the company's stock.
Now what
Fiverr continues to expand the number of active buyers on its platform to 4.2 million, up 3% from the year prior, while the amount spent increased 12% to $262 per buyer.
That's a long way from when Fiverr was a platform where you could hire someone to perform a gig for $5 (hence its name), and suggests the company and its stock is a long way from slowing down.
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Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fiverr International. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
