Fiverr's AI-Driven Restructuring: Layoffs and Strategic Shift Spark Mixed Analyst Reactions

Why JPMorgan Says Fiverr's Painful Layoffs Could Lead To Long-Term Gain - Fiverr Intl (NYSE:FVRR)

As the gig economy evolves, companies are increasingly leveraging artificial intelligence to enhance operational efficiency and drive sustainable growth. This technological shift opens up new possibilities for businesses to streamline processes and innovate, setting the stage for significant strategic transformations. Fiverr International Ltd's (NYSE:FVRR) AI-driven restructuring will position the company to target larger long-term growth opportunities, according to JPMorgan. The Fiverr International Analyst: Analyst Doug Anmuth maintained an Overweight rating and price target of $30. The Fiverr International Thesis: The company's restructuring includes transitioning to an "AI-native infrastructure and mindset," laying off around 30% of its current workforce, and returning to a startup mode, Anmuth said in the note. Check out other analyst stock ratings. Fiverr International reiterated its guidance for the third quarter and 2025, indicating that the restructuring will not have a material impact on its business or revenue in the immediate future, he added. The company expects the restructuring to result in around $30 million in annualized gross savings, "some of which will be reinvested in hiring AI talent, while some of it will be passed through to EBITDA," the analyst stated. "Overall, we think the announcement is a function of AI-driven efficiency gains that the company has recently achieved, as well as the need to build AI-products at a faster pace," he further wrote. FVRR Price Action: Fiverr Intl shares were up 2.57% at $23.52 at the time of publication on Tuesday. The stock is trading within its 52-week range of $20.82 to $36.11, according to Benzinga Pro data. Read More: Salesforce Teams Up With CrowdStrike To Fortify AI Agents Against Growing Cyber Threats Photo: Shutterstock FVRRFiverr International Ltd$23.562.75%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum20.39Growth67.55QualityN/AValue53.47Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Fiverr stock price target lowered to $30 by Oppenheimer on AI transition By Investing.com

Investing.com - Oppenheimer has lowered its price target on Fiverr International Ltd. (NYSE:FVRR) to $30.00 from $35.00 while maintaining an Outperform rating. Currently trading at $22.93, InvestingPro analysis suggests the stock is undervalued, with impressive gross profit margins of 81%. The adjustment follows Fiverr's announcement on Tuesday of a significant workforce reduction, cutting approximately 30% of its headcount as part of a strategic shift toward an AI-focused future. The company plans to eliminate around 250 positions, primarily reducing middle management and engineering roles. Fiverr intends to reinvest 50% of the cost savings from these cuts to hire higher-priced AI talent, positioning itself to help businesses of all sizes implement AI-enabled services. The company has not provided revenue guidance for fiscal year 2026. Despite the headcount reduction, Fiverr expects its FY26 EBITDA margin to reach 25%, compared to Oppenheimer's previous estimate of 23% and the Street's consensus of 22%. Oppenheimer has revised its FY26 revenue growth projection downward to 5% year-over-year from its previous 15% estimate. The new $30 price target represents 7x FY26 EBITDA, which Oppenheimer notes is a 41% discount to peers, while Fiverr is growing FY24-FY26 EBITDA 197% faster than its peer group. In other recent news, Fiverr International Ltd . reported its Q2 2025 earnings, slightly surpassing forecasts with earnings per share of $0.69 compared to the expected $0.67. The company also exceeded revenue expectations, posting $108.6 million against the anticipated $107.73 million. Additionally, Fiverr announced a restructuring plan that includes cutting approximately 250 jobs as part of a shift to become an "AI-first company." This restructuring aims to create a leaner organization with fewer management layers and an AI-native infrastructure. Despite the workforce reduction, Fiverr has maintained its guidance for the third quarter and full year 2025. In terms of analyst perspectives, JMP Securities reiterated its Market Perform rating on Fiverr, citing macroeconomic challenges and potential AI disruptions. The firm noted that Fiverr's recent restructuring was not due to weakening demand. These developments reflect Fiverr's strategic focus and operational adjustments amidst evolving market conditions. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.