While stock picking isn't easy, for those willing to persist and learn, it is possible to buy shares in great companies, and generate wonderful returns. While not every stock performs well, when investors win, they can win big. For example, the Fiverr International Ltd. (NYSE:FVRR) share price is up a whopping 758% in the last year, a handsome return in a single year. Also pleasing for shareholders was the 78% gain in the last three months. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. We'll need to follow Fiverr International for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
We love happy stories like this one. The company should be really proud of that performance!
Fiverr International wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over the last twelve months, Fiverr International's revenue grew by 66%. That's well above most other pre-profit companies. But the share price has really rocketed in response gaining 758% as previously mentioned. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. But if the share price does moderate a bit, there might be an opportunity for high growth investors.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
It's nice to see that Fiverr International shareholders have gained 758% over the last year. That's better than the more recent three month gain of 78%, implying that share price has plateaued recently. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). It's always interesting to track share price performance over the longer term. But to understand Fiverr International better, we need to consider many other factors. Take risks, for example - Fiverr International has 2 warning signs we think you should be aware of.
We will like Fiverr International better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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