I Just Doubled My Stake in a Historically Cheap Gig Economy Stock That's Cratered 95% Over the Last 5 Years

Core Insights - Fiverr has experienced a significant decline in annual active buyers, dropping from 4.2 million in September 2022 to 3.3 million in September 2025, reflecting a 21% decrease over three years [1][12] - The end of the COVID-19 pandemic has been a major factor in this decline, as companies have begun to bring workers back to physical offices, reducing the demand for freelance work [2][6] - Despite these challenges, Fiverr's marketplace is well-positioned to benefit from a permanent shift towards remote work, with remote workdays increasing from 7% pre-pandemic to approximately 28% by 2025 [11] Company Performance - Fiverr's annual spend per buyer has increased by 26% to $330, indicating that remaining buyers are more engaged [12] - The company maintains a high marketplace take rate of 27.6%, significantly above the industry average, contributing to a gross margin exceeding 80% [13] - Fiverr's balance sheet is strong, with $712.5 million in cash and marketable securities against $459.8 million in convertible debt, resulting in a net cash position of $252.7 million, which is nearly 44% of its market cap [14] Valuation and Investment Potential - Fiverr's stock is currently considered historically cheap, with a forward P/E ratio of 5.5 based on adjusted earnings per share and 13.5 using GAAP EPS [16] - The company is capable of generating over $100 million in annual operating cash flow, suggesting that its net cash could exceed its market cap by early 2029 [15] - The stock has lost 95% of its value since peaking in February 2021, making it an attractive investment opportunity at its current valuation [6][10]