What happened
Actions of Fiverr International (NYSE: FVRR) it fell today after a UBS analyst downgraded the company’s shares from neutral to sell.
Investors were clearly not satisfied with today’s news and pushed technology stocks down by 14%. Fiverr’s share price had dropped 10.4% at 12:58 pm EST.
And
UBS analyst Eric Sheridan said in a note to investors that Fiverr is “emblematic of a market that values growth above any assessment that can be justified”. And while he downgraded the stock, he raised his target price to $ 190, up from the previous $ 148.
Image source: Getty Images.
Sheridan strongly urged investors that “they need to be cautious about the growing trend of bullish market optimism”. This warning should be applied to companies that have benefited from COVID-19 and those that went public in the last 18 months, according to the analyst.
Investors appeared to agree, at least in part, with Sheridan’s assessment of Fiverr, and the company’s stock fell today after a prolonged recovery last year.
What now
Fiverr’s stock price skyrocketed in 2020 as more people looked for work on the company’s freelance platform during the pandemic. Even after today’s stock price plummeted, the company’s stock still gained a whopping 785% in the past 12 months. With the pandemic spreading today and the vaccine launch slower than expected in many countries, Fiverr’s platform may continue to grow in 2021.