what happened
Shares of Fiverr International (NYSE: FVRR) tumbled today after a UBS analyst downgraded the company’s stock from neutral to sell.
Investors were clearly not happy with today’s news and the technological share fell by as much as 14%. Fiverr’s share price fell 10.4% from 12:58 EST.
Approximately
UBS analyst Eric Sheridan said in an investor letter that Fiverr “is indicative of a market that values growth above any semblance of valuation that can be justified.” And while downgrading the stock, it raises the price target to $ 190, from the previous $ 148.
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Sheridan strongly urged investors to ‘be wary of the rising trend of optimism in the bull market’. According to the analyst, the warning should be applied to companies that have benefited from COVID-19 and those that have become known in the past 18 months.
Investors apparently agreed, at least in part, with Sheridan’s rating of Fiverr, and the company’s share fell today after a long rally over the past year.
Now what
Fiverr’s share price skyrocketed in 2020 when more people sought employment on the company’s freelance platform during the pandemic. Even after today’s share price, the company’s share has continued to gain a staggering 785% over the past twelve months. As the pandemic is currently raging and a slower-than-expected revenue in many countries, Fiverr’s platform could continue to grow in 2021.