Non-farm payrolls were up to 692,000 for June, which is a healthy number. Almost half of those returning to work were in the hospitality industries. But that means there’s also half that are in other industries. So as the economy rebounds, it also means gig workers — like those that rely on Fiverr (NYSE:FVRR) — are getting more gigs as well.
Usually when an economy recovers from hard times, companies don’t necessarily hire for full-time workers right from the start, especially if they’re looking for creative and computing talent.
They don’t have the business yet to commit to adding someone to payroll and the economy may be headed in the right direction, but there are still risks. That means contract work is the ideal solution.
What’s more, contract work allows a company to test drive a new worker before actually hiring them.
The Perfect Time for FVRR
Headquartered in Israel, FVRR launched about 11 years ago to a global market that was starting to rely on the gig economy as the financial crash of 2008 flattened many sectors.
Hiring what you needed when you needed it became much more attractive to employers. And employees in the creative and IT worlds are many times the first to get cut when times get tough. Getting any kind of work in these communities that were very familiar with work-from-home gigs was income, and potentially a foot in the door for full-time work.
But as fast as it grew, FVRR didn’t go public until 2019 — a decade after it started. However, it came around just in time for the pandemic.
As the economy recovered, it was still building back in the same paradigm that it had always had. Workers go to offices and work. Maybe they could work from home, but it was more an exception to the rule.
However, that’s there’s been a big shift since the pandemic. When people couldn’t go to offices, companies had to reframe how to remain productive yet not have the traditional workplace environment.
In turn, this has again fueled Fiverr’s business on both the talent side and the employer side. And FVRR stock has seen a big boost since the end of the first quarter.
FVRR Stock at a Glance
In the past 12 months, FVRR stock is up 210%. Its 52-week range is runs from a low of $75.65 to high of $336. And right now, FVRR trades around $243.
The company remains in its early growth phase, acquiring complementary companies and expanding its operations into more countries. Growth is its core metric now. And it continues to deliver. Its Q4 numbers were released in February, and it beat revenue expectations, with revenue up 89% compared to year ago levels (pre-pandemic).
Then, Q1 numbers were released in May and they were equally impressive. Revenue was up 100% year over year, and Fiverr raised its 2021 guidance.
My Portfolio Grader rates FVRR stock a ‘B’ right now as the market digests the big gains and the short-term concerns regarding inflation. But this pause will refresh FVRR stock. Sitting comfortably off its highs, the stock has been consolidating for the past month or so.
However, that’s likely to change now that we’re entering the second half of the year and the global economy starts moving forward in earnest.
On the date of publication, Louis Navellier had a position FVRR. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
InvestorPlace Research Staff member primarily responsible for this article did not hold(either directly or indirectly) any positions in the securities mentioned in this article.
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