Fiverr and Chewy Stocks Drop Over 40%, Present Potential Value Despite Growth
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Fiverr's stock is down 40% over the past year despite the company continuing to grow revenue, turning a profit, and making AI investments to drive future growth. It could be a good buy at current valuations.
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Chewy's stock has fallen 60% over the past year due to worries about the pet industry, but financials remain strong with rising sales, profitability, and free cash flow generation. It trades at a low P/S ratio.
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Both Fiverr and Chewy have aspects of their business that provide resilience - Fiverr's growing services and take rate, Chewy's recurring revenue from consumables.
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Fiverr is benefiting from the expansion of the gig economy and making AI investments to boost growth, while most of Chewy's sales come from non-discretionary pet healthcare and consumables.
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The stocks seem attractively valued considering their continued growth and profit potential, presenting possible buying opportunities for long-term investors.