Should Traders Buy Fiverr Stock's Latest Dip?

The security carries a 45% year-over-year deficit

facebook twitter linkedin

The shares of Fiverr International Ltd. (NYSE:FVRR) are down 2.3% at $115.11 at last check. Though a reason for today's drop was not immediately clear, it could be related to some broader-market headwinds. The equity has been trending lower over the last few months, though, culminating in a Dec. 17, annual low $108.19. Plus, the descending 20-day moving average gas been guiding the shares lower since November, contributing to FVRR's 45% year-over-year deficit.

FVRR 20 Day 1220

Short sellers have been piling on Fiverr International stock lately. Short interest jumped 10.2% in the most recent reporting period, and the 3.04 million shares sold short make up 9.7% of FVRR's available float, or nearly four days' worth of pent-up buying power.

The options pits also lean bearish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security sports a 50-day put/call volume ratio of 1.41 that stands higher than 98% of annual readings. This suggests long calls have been getting picked up at a much quicker-than-usual pace.  

Fiverr stock’s valuation continues to be rich from a fundamental point of view, despite its massive fall over the past year. However, the freelance marketplace name is still posting impressive top-line figures, reporting 425% revenue growth since 2017. FVRR's trailing 12-month revenues have also grown 44% since fiscal 2020.

Nonetheless, Fiverr stock is trading at a very high price-sales ratio of 16.24. Overall, FVRR has potential for considerable long-term growth, but is likely far too great of a risk at its current valuation.


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!