Fiverr stock rating reiterated as Market Perform by JMP amid AI headwinds

Investing.com - JMP Securities has reiterated its Market Perform rating on Fiverr International Ltd. (NYSE:FVRR), citing ongoing macroeconomic softness and potential disruption from artificial intelligence. The company, which maintains impressive gross profit margins of 81% and has achieved 12.6% revenue growth over the last twelve months, is currently trading below its InvestingPro Fair Value.

The firm acknowledged that Fiverr’s recent restructuring was not due to weakening demand, but maintained its neutral stance on the freelance marketplace platform’s stock.

JMP highlighted concerns about AI technology potentially displacing work in the lower end of the professional labor market, creating headwinds for Fiverr’s business model.

The research firm noted that while Fiverr has successfully scaled its value-added services, maintaining growth momentum in these areas will be challenging without improvement in Gross Merchandise Value (GMV) trends.

JMP indicated it would reconsider its rating upon seeing either macroeconomic improvement or clear evidence that Fiverr’s AI-first strategy is accelerating product development enough to drive a financial inflection point.

In other recent news, Fiverr International has announced a significant restructuring plan, which involves cutting approximately 250 jobs across various departments. This move is part of the company’s strategy to transform into an "AI-first company," as outlined by founder and CEO Micha Kaufman. Despite the reduction in workforce, Fiverr has maintained its financial guidance for the third quarter and the full year of 2025. In their Q2 2025 earnings report, Fiverr exceeded analyst expectations with an earnings per share (EPS) of $0.69 and revenue of $108.6 million, both surpassing forecasts of $0.67 EPS and $107.73 million in revenue. These results indicate a positive financial performance for the quarter. However, the company’s stock experienced a decline in pre-market trading, which is not uncommon after earnings announcements. These developments highlight Fiverr’s ongoing efforts to streamline operations while focusing on AI-driven growth.

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