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.
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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.
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