Needham lowers Fiverr stock price target to $32 on marketplace challenges

Published 31/07/2025, 13:46
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Investing.com - Needham lowered its price target on Fiverr International Ltd . (NYSE:FVRR) to $32.00 from $36.00 on Thursday, while maintaining a Buy rating on the freelance marketplace operator. The stock, currently trading near its 52-week low of $20.83, appears undervalued according to InvestingPro analysis.

The price target reduction follows Fiverr’s continued challenges with Gross Merchandise Value (GMV) trends, which showed worsening year-over-year declines in the second quarter compared to the first quarter of 2025.

Needham characterized Fiverr as a "show me story" where the bearish market narrative is currently prevailing due to the ongoing GMV weakness across the platform.

The investment firm noted potential upside could come from a reversal in these negative trends, particularly through Fiverr’s artificial intelligence investments in the marketplace experience, including initiatives like Fiverr Go and Dynamic Matching, as well as the company’s efforts to move upmarket.

Despite maintaining its Buy rating, Needham indicated it appears "too early in the crossover" for growth in more complex gigs to offset weakness in simple gigs across Fiverr’s marketplace.

In other recent news, Fiverr International Ltd. reported second-quarter earnings that surpassed analyst expectations. The strong performance was attributed to significant growth in AI-related services and the company’s Managed Services business. These developments highlight Fiverr’s ability to capitalize on emerging technology trends. The announcement of these results led to a noticeable reaction in the market. Analysts had anticipated solid earnings, but the company’s performance exceeded those projections. This earnings beat underscores Fiverr’s strategic focus on expanding its service offerings. These results are part of a series of recent developments for the company.

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