Jim Cramer - Mad Money Fiverr International FVRR-N DON'T BUY Dec 04, 2020

They have a cool freelance model. He really likes it, but the stock is very expensive. That said, it keeps getting it right.

Online platform that lets buyers and sellers connect to exchange digital services. Allows flexibility and remote work. Now the leading freelance platform. Enjoys scale and network advantages over its competition. Price target of $290.85. Buy it here, add at $210 and 190. Put a stop at $175-180. No dividend. (Analysts’ price target is $248.00)

(A Top Pick Aug 04/21, Down 85%) Online platform connecting buyers and sellers for digital services. Not profitable. Financial metrics make it hard to wade back in.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

FVRR is down 29% year-to-date and 14% on a one-year basis. It is a small name now ($827M market cap) and while sales and earnings continue to grow, its growth rates are slowing and analyst estimates are trending lower. But, it is now profitable, it trades at a cheap valuation of 9X forward earnings, it has no long-term debt, a cash position close to its total market cap ($724M), and it uses some of its free cash flows to repurchase shares. Short interest is fairly high at 10%, and much of the pessimism around the name is based on fear that AI tools will displace Fiverr gigs. Stock-based compensation is also rising, which is eating into its free cash flows. Some of the fundamentals are quite solid, but we feel that if management lowers stock based compensation, and began to really decrease share count through more buybacks, the price momentum could improve.
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