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FIVERR goes public, will it become HUNDREDRR?

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MJ DeMarco

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Great news if you're a part of the FiveRR team, probably not for customers.

See here:


Let the price increases begin!
Let the syrupy bullshit emails "in order to serve our customers better..." begin!

Stock starts trading with a bang.


Up 50%.
 

John F.

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I'm sure this is the best possible thing they could have done to help their customers in every way possible. <sarcasm font>
 

SpaceKing44

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Gary Vee the other day on LinkedIn was saying something about companies trying to secure the next round of funding instead of trying to be profitable. I think he called them "profit arbitrage machines". They do that with the hope of being bought out. That is what this reminds me of for some reason.

I get doing business that way, but what concerns me is the seemingly overwhelming supply of people online and in the business world that advocate building companies like that for that reason alone. That concern is rooted in the idea of if you don't know how to run profitably -- are you going to be able to keep that value that you made going on if the only reason for you existing in business was to be bought; while not paying it forward unto others, and never giving a thought on making a business that can survive without someone else's piggy bank?

Just my two cents.
 

Kak

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I'm sure this is the best possible thing they could have done to help their customers in every way possible. <sarcasm font>

It pretty much is the best possible thing they could have done to make money for their shareholders... Which is the point of business.
 

TheCj

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So are these companies like fiverr, uber etc.. actually profitable and just work the numbers to continually show these huge losses year after year?
I'm not too familiar with all the economics involved. When I see these companies going public it makes me think that they have ended there profitability/growth spike run and are just getting as much money as they can now.
 

Solais

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So are these companies like fiverr, uber etc.. actually profitable and just work the numbers to continually show these huge losses year after year?
I'm not too familiar with all the economics involved. When I see these companies going public it makes me think that they have ended there profitability/growth spike run and are just getting as much money as they can now.

Uber is banking on autonomous vehicles to cut labor costs. There is no way their business model is sustainable as it is now.
 

Andy Black

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Alana L.

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So are these companies like fiverr, uber etc.. actually profitable and just work the numbers to continually show these huge losses year after year?
I'm not too familiar with all the economics involved. When I see these companies going public it makes me think that they have ended there profitability/growth spike run and are just getting as much money as they can now.

I don't see how Fiverr can't be profitable. They fee the buyer AND the seller on every single order. It's also a pretty active platform.
 

AppMan

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I stopped using fiverr when lift the limit of five dollars , now it is not different than any other freelancing website in n term of price
 

Kak

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For how long?

What kind of question is this? I don't really get it.

What does an IPO do? It makes the holdings of every owner of the firm liquid. Liquidity is worth money. There is a reason the multiples of a publicly traded company are higher than that of a company selling privately.

It is also a hot tech firm that sells shovels to the gold rush of freelancers.

There are reasons to stay private, like killing it on operations and not wanting to share. But the day they offered stock on the open market they sold more than $5 dollar handjobs. They sold opportunity. Opportunity is more valuable than a handjob.
 

rogue synthetic

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I was (mostly) teasing @Kak.

But there is a real point to be made about maximizing short-term value by sacrificing long-term growth. First-order actions have higher-order consequences which are harder to see.

These brushfire companies looking to sell out to VC at the quickest opportunity are "maximizing shareholder value", sure. Will they still exist and create value in 5 years?

If not, then how valuable is the company in real terms (real versus manufactured numbers that make economists blush)
 

Kak

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I was (mostly) teasing @Kak.

But there is a real point to be made about maximizing short-term value by sacrificing long-term growth. First-order actions have higher-order consequences which are harder to see.

These brushfire companies looking to sell out to VC at the quickest opportunity are "maximizing shareholder value", sure. Will they still exist and create value in 5 years?

If not, then how valuable is the company in real terms (real versus manufactured numbers that make economists blush)

So I look at stock more like a product. Who and when is likely to pay the most for it? If you can identify that market and timing, you sell.

Everything is worth what someone else will pay for it. So right now they are part of a hot category. They can raise a bunch of money and make everyone that owns a piece of this richer by filing an IPO. They should.

I haven't done the research, but I would imagine that a publically traded company is more likely to be around 5 or 10 years from now than a private one.

My issue is that by doing it, you have turned a lot of the decision making into a democracy, which generally results in a wimpy drive, but it will usually land in the fairway.

The question to ask isn't if they will be around and providing value. Why? There is a time for every company to flourish and a time where things get harder. More relevant firms might begin providing their own unique value.

The right question to ask is: Would you, as an investor or proprietor, still want to have your own personal wealth attached to this 5 year old company? If so than I think the answer to your question is yes. They will be providing value in 5 years. If not, why go down with the ship when someone else is inspired by it?

I don't see this sacrificing long term growth either.
 
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Fox

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Fiverr will do well.

They are the go to name for cheap work.

They got desperate freelancers lining up around the block.

They take a decent cut but the freelancers won’t go anywhere else. They can’t.

Lesson if you are a freelancer - whoever makes the sale makes the rules.
 

Fox

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Tinder worked a similar number by being the go to place for girls to get attention/dates online.

Then they monetized it every which way for guys to be in with the smallest chance of getting some matches. As it gets more competitive those prices are only going one way. Lottery mentality.

Desperate people will suck it up for the slightest chance of success under someone else’s roof rather than take control of their own destiny.

You have to really mess up to not be making money with this business model. You have a workforce begging for work and all the clients in your pocket. You can cut out whatever slice of the pie you want. Fiverr could take 50% tomorrow and still have people eager to work every project.

These business will last a long time cause they were first to have the market share and critical mass. They only have themselves to blame if they can’t keep churning out profits. Desperate people aren’t going anywhere.
 

rogue synthetic

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The question to ask isn't if they will be around and providing value. Why? There is a time for every company to flourish and a time where things get harder. More relevant firms might begin providing their own unique value.

The right question to ask is: Would you, as an investor or proprietor, still want to have your own personal wealth attached to this 5 year old company? If so than I think the answer to your question is yes. They will be providing value in 5 years. If not, why go down with the ship when someone else is inspired by it?

I don't see this sacrificing long term growth either.

Sure.

The comment isn't really about the narrow economic or financial details. It has more to do with what the economists call externalities -- this is what I meant by higher order effects, all the unanticipated changes on the culture, on the "value" drivers, on the creators/sellers and the buyers... a whole range of things that the numbers and forecasts won't capture.

The folks upthread are worrying about these changes, and I think they're right to do so. But there's no point belaboring it...we all know how these conversations tend to go, so I'm happy to leave it at that.
 

Kak

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Sure.

The comment isn't really about the narrow economic or financial details. It has more to do with what the economists call externalities -- this is what I meant by higher order effects, all the unanticipated changes on the culture, on the "value" drivers, on the creators/sellers and the buyers... a whole range of things that the numbers and forecasts won't capture.

The folks upthread are worrying about these changes, and I think they're right to do so. But there's no point belaboring it...we all know how these conversations tend to go, so I'm happy to leave it at that.

Who cares?

I know it is blunt, but seriously, who cares?

If they aren’t providing the value that the market is looking for someone else will. They are not in a vacuum. There are several companies already at this party as we speak.
 

rogue synthetic

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I know it is blunt, but seriously, who cares?

Yes, exactly. That's the question.

But look...there's been a communication breakdown here. We aren't quite talking about the same things.

That's my fault. I shouldn't have brought it up, even un-seriously.

I think you're right about the stock/company itself. It probably will be just fine, and it looks like a good investment opportunity.

If you want to continue this discussion thread, DM me and I'm happy to have the conversation.

Have a great day @Kak.
 

AdamMaxum

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Fiverr isn’t going to last..especially if they continue down the path they’re on with moving away from the cheap jobs. I’m honestly surprised they grew this big.

I wouldn’t buy this stock. Just my 2c.
 

itsmalcolmhere

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personally i feel if anyone would invest in them, its best for short term gains unless they announce something big, which during 2-3 years highly doubt so
 

MJ DeMarco

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Stock has been trending down since its first big up day. Now below first open price, and approaching IPO price.

As an investor, I wouldn't buy it. While I like the service, it strikes me as the type of company that should remain private.

25715
 

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