Why Fiverr Stock fell today

What happened

Actions of Fiverr International (NYSE: FVRR) fell today after a UBS analyst downgraded the company’s stock from neutral to sell.

Investors were clearly unhappy with today’s news and pushed the tech stock down 14%. Fiverr’s stock price had fallen 10.4% as of 12:58 p.m. EST.

So what

UBS analyst Eric Sheridan said in a note to investors that Fiverr is “emblematic of a market that values ​​growth over any semblance of valuation that can be justified.” And while he downgraded the stock, he raised his price target to $ 190, from the previous $ 148.

Sheridan strongly urged investors to “beware of the uptrend in bull market optimism.” This word of warning should apply to businesses that have benefited from COVID-19 and those that have gone public in the past 18 months, according to the analyst.

Investors seemed to agree, at least in part, with Sheridan’s valuation on Fiverr, and the company’s stock fell today after a prolonged rally over the past year.

Now what

Fiverr’s share price soared in 2020 as more people sought work on the company’s freelance platform during the pandemic. Even after the stock price fell today, the company’s stock still gained 785% in the past 12 months. With the pandemic currently raging and the rollout of vaccines slower than expected in many countries, Fiverr’s platform could continue to see growth in 2021.