On Thursday, Fiverr International Ltd (NYSE:FVRR) shares soared more than 5% after announcing the purchase of the Seattle-based online learning platform CreativeLive. The company is buying the platform to expand its educational offerings.
CreativeLive allows people to learn about design, business, marketing, and other creative and entrepreneurial topics. Since its inception in 2010, the platform has helped over 10 million members learn new skills through its 2000+ classes.
According to the agreement, CreativeLive will remain a standalone company, headed by the current CEO and founder Chase Jarvis. In addition, Fiverr’s own learning platform, Fiverr Learn, will be folded into CreativeLive.
Time to bet on Fiverr’s growth?
From an investment perspective, Fiverr shares trade at a steep forward P/E ratio of 321.18, making the stock less attractive to value investors. However, analysts forecast its earnings per share to grow by 58.40% this year, before spiking by a whopping 1,028% next year.
Therefore, although the stock may not be appealing to short-term investors, its exciting growth story makes it an ideal target for long-term investors. Moreover, its purchase of CreativeLive could yield long-term synergies, boosting the growth of its online freelance marketplace.
Source – TradingView
There is room left to run
Technically, Fiverr shares appear to be trading within a gently descending channel formation in the intraday chart. However, the stock has recently rejected a retest of the trendline support, bouncing back to rally towards the 100-day moving average.
Therefore, with the stock yet to hit overbought conditions, the current rebound could continue to the foreseeable future.
Investors could target extended gains at about $208.98, or higher at $233.79. On the other hand, $160.84 and $136.77 are crucial support zones.
Not too late to buy FVRR stock
In summary, although Fiverr shares surged more than 5% on Thursday morning, the stock is still down more than 6% this year. Moreover, Fiverr’s stock price is far from reaching overbought conditions amid the recent rally.
Therefore, given the company’s exciting earnings growth prospects, it could be time to buy the stock before the price advances further.
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