I've Been Wrong About Fiverr International Stock for 3 Years. Here's Why I'm Finally Changing My Mind.
Was I wrong about Fiverr and AI? Yes. Am I selling? No. Here's why.
Three years ago, I posited that generative AI would create demand for skilled freelancers on Fiverr International (FVRR -1.44%), leading to a rise in the company's stock. However, my prediction has proven to be incorrect. Fiverr is failing to generate the anticipated growth in 2026. With the advent of AI tools capable of producing copy, logos, and basic code, fewer individuals are hiring freelancers for such tasks.
Consequently, Fiverr's annualized active buyers decreased from 3.4 million in Q2 2025 to 2.7 million in the same period this year. Writing and translation revenue dropped by 24% year-over-year due to AI tools taking over these services. As of October 27, my Fiverr shares have declined by 88.6% over the past five years.
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