In a world that’s recovering from the Covid-19 pandemic, is the “new normal” built for gig workers? That’s a question that any prospective investor in Fiverr (NYSE:FVRR) stock should answer before taking a position.

Since lockdowns have been mostly lifted and people are returning to the workplace, investors’ knee-jerk reaction might be to assume that the traditional employment ecosystem will replace the gig economy.

On the other hand, it could be argued that there is no “normal” workplace economy anymore, as it’s been irrevocably altered.

In other words, today’s businesses utilize a combination of full-time, in-office employees and independent contractors.

And, many of those businesses find their freelance human capital through Fiverr. The data proves this, as we’ll see – and with that, there may be a rare opportunity here for contrarian market traders.

A Closer Look at FVRR Stock

Keep this number in mind: $160. It’s important for traders of FVRR stock. The stock bumped up against resistance at $160 in October and November of last year.

There’s an old saying among market technicians: what was resistance, can become support later on.

That’s what happened with FVRR stock as it broke above $160 early this year, only to return to it a few months later.

In May and then again in August, the stock found support at $160 and then bounced off of it. Again, the theme here is support becoming resistance.

By early September, FVRR stock was floating in the $ 180s and had plenty of room to run. After all, the share price had reached $336 at one point in February.

So, there are a couple of ways to play this. One would be to wait for the stock price to pull back to $160 again, and then take a long position.

Alternatively, you could just start accumulating the shares and buy more if the FVRR stock price goes down; it’s the old strategy of “averaging down.”

Growing Gig Nation

The “freelancer nation,” as I like to call it (and I’m a long-standing member myself), isn’t just a fringe group anymore.

If anything good came out of Covid-19, it’s the opportunity for businesses to see how gig workers can shine. Most of us are adaptable, pandemic-ready (because we know how to work remotely) and cost-efficient.

Plus, we tend to know how to work independently. Also, we’re reliable: we’re still ready to work even as the Covid-19 pandemic fears subside.

Fiverr is a vast online marketplace that connects employers with freelance workers. (Don’t be fooled by the company’s name – most jobs cost more than five bucks.)

If anything, the freelance economy is growing, not contracting. According to Orbis Market Research, the global freelance platforms market size is projected to reach a whopping $9192.9 million by 2026.

More Workers, More Buyers

Moreover, that same market is expected to exhibit a compound annual growth rate (CAGR) of 15.3% from 2021 to 2026.

Plus, here’s a statistic that might shock you: freelancers comprise over 35% of the total working population in the U.S.

That’s right: if you put three American workers in an elevator, probably one of them is a gig worker.

So, does the rapid emergence of the freelance economy translate to strong revenue generation for Fiverr?

You bet it does. I’ll let the company’s second-quarter 2021 fiscal results do the talking:

• $75.3 million in revenues, up 60% year-over-year (YoY)
• 84.4% non-GAAP gross margin
• 4 million active buyers, up 43% YoY
• Per-buyer spend of $226, up 23% YoY
• Projected third-quarter revenues of $68 million to $72 million
• Projected full-year 2021 revenues of $280 million to $288 million

The Bottom Line

I case you couldn’t tell, I’m proud to be a freelancer. In 2021, any stigma surrounding gig work is pretty much gone, I’d say.

Don’t expect the old conception of a “normal” workplace to prevail anytime soon. After Covid-19, business models have changed dramatically.

That’s not necessarily a bad thing. For freelancers, it’s an opportunity to show what we can do – and for FVRR stock traders, it’s a chance to invest in the future of work.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.