Analyst downgrades pile up for FVRR as investors weigh near-term revenue pressure against long-term AI ambitions.
- Citi said Fiverr’s 2026 transformation plan is the right long-term move, but it offers less visibility for the next 12-18 months.
- Roth Capital said the company's transition to an AI-first, human-in-the-loop knowledge-worker marketplace will "take more time or require more money.”
- The company has repeatedly noted that AI-related services are booming, with surging demand for AI agents, workflow automation, and vibe coding.
Fiverr International shares closed 5.7% lower on Wednesday, marking a second consecutive session of sharp declines as Wall Street grew cautious about the pace of the company’s transition to an AI-first strategy.
The stock is down 38% so far this year, extending last year’s losses as restructuring and turnaround efforts take longer than expected to show results. Fiverr operates an online marketplace connecting freelancers with businesses ranging from small firms to Fortune 500 companies, offering services across AI development, digital marketing, finance, consulting, video animation, music, and architecture.
Wall Street’s View On FVRR
Citi downgraded Fiverr to ‘Neutral’ from ‘Buy’ and cut the price target to $15, down from $33, according to TheFly. The price target implies a 21.5% upside to Wednesday’s closing price of $12.35. Citi said Fiverr's 2026 transformation plan is the right thing to do over the long term, but it creates less visibility over the next 12-18 months as it accelerates the mix shift toward high-value and complex projects.
The firm noted that the shares have significant valuation support given Fiverr's strong balance sheet, but the risk-reward is balanced at current levels. The company has repeatedly noted that AI-related services are booming, with surging demand for AI agents, workflow automation, and vibe coding.
Roth Capital downgraded Fiverr to ‘Neutral’ from ‘Buy’ with a price target of $14, compared with the earlier target of $32. The company reported a "miss and lower" quarter, and Fiverr's 2026 outlook implies mid-teens year-over-year declines in its Marketplace revenue along with margin deleverage, the firm said.
The firm said that the company's transition to an AI-first human-in-the-loop knowledge worker marketplace will "take more time or require more money.”
How Are Stocktwits Users Reacting?
Retail sentiment on Fiverr was in the ‘extremely bullish’ territory compared to ‘neutral’ a week ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.
In the last 24 hours, retail message volume on Stocktwits jumped by more than 555% for the stock.
Shares of Fiverr have declined 56% in the last 12 months.
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