Time to market is not really investing. No one knows where the market is going tomorrow, or what a particular stock will do next week. There are always surprises that move stock prices up or down without any prior warning. This is exactly what betting on price moves in the short term – a form of gambling. True investment success comes from buying shares of great companies with great management teams, holding those stocks for a long time and allowing compound returns to work their magic.
That said, it certainly doesn’t hurt when those incredible stocks are available at bargain prices. this is what i see Fiverr International (FVRR -5.48%, And Silvergate Capital (And -4.21%, immediately. And it may not be the absolute market bottom for one of these spring-loaded stocks, but they are cheap and you can always buy more if share prices continue to fall.
Fiverr: Disrupting the world of work
The world of work is changing before our eyes. For better or worse, the age-old tradition of setting up a career with a 9 to 5 work schedule, pension plan and the gold clock on retirement is fading. so called gig economy That plan is gnawing at the edges, threatening to change it entirely in some industries.
Fiverr International is not only leading this work. This company has written entire chapters of the gig economy playbook and continues to innovate. Always popular with clients across the range of small and medium businesses, Fiverr recently forayed into the enterprise space with the launch of Fiverr Business. This freelancing services marketplace helps buyers identify needs that can be filled by a qualified freelancer, and provides onboarding templates for new freelance relationships. The platform is only two years old, but already represents over 5% of Fiverr’s total gross trading value (GMV).
“We believe the opportunity in the online freelancing market is huge and in the early innings,” Fiverr CEO Micah Kaufman said in a recent earnings call. In other words, Fiverr needs to be able to grow rapidly for several years before any meaningful market can run into saturation.
Many market makers seem to have missed that memo. Fiverr’s recent growth boom is widely seen as a direct result of the initial coronavirus lockdown. The stock is down 89% since mid-February 2021, when COVID-19 vaccines became widely available. At the same time, Fiverr sales continued to grow, indicating a healthy business. There’s a clear disconnect between the company’s high-octane growth and the stock’s dramatic decline:
This is the stuff from which wealth-building investments are made. Fiverr’s stock is poised for a powerful rebound in the long run. The road to unlocking that boom may be bumpy and Fiverr stock could fall even further, but that shouldn’t stop you from investing at these inviting share prices.
Silvergate: The Bank Ticking the Crypto Market
Cryptocurrencies and crypto-trading services are not alone. They need to connect with the traditional banking world in order for people and businesses to exchange real-world currencies for digital coins. Silvergate Capital was an early provider of financial services for crypto-based projects, and remains the leading lender in the sector to this day. In addition, the company has developed its own technology platform to manage transactions involving cryptocurrencies and fiat currencies. The Silvergate Exchange Network (SEN) is always operational, providing trading services round the clock and around the world.
This combination of significant crypto-trading infrastructure and plain old capital assets makes Silvergate a unique entry point into the cryptocurrency market. By investing in Silvergate, you can benefit from continuous developments in this area without having to choose a specific winner among the thousands of blockchain currencies available today. Silvergate and SYN stand behind many crypto projects.
For example, this is where micro strategy (MSTR -4.89%, That changed when it wanted to sign off on a secured loan against the venture analytics company’s existing Bitcoin (B T c 0.58%, Holding. And almost every crypto exchange you’ve ever heard of operates on the SYN platform, including coinbase (coin -4.18%,Kraken, Bitstamp and Crypto.com.
So Silvergate gives you tap into crypto market Without any digital assets, and with the benefit of running a growing and profitable business. In the second quarter of 2022, the bank’s earnings grew 41% year over year, along with an 18% increase in assets under management. SEN Systems handled $191 billion worth of cryptocurrency transfers during the quarter. And the company achieved these high-quality results in a period when bitcoin prices fell by 57% and Ethereum (ETH) 0.95%, decreased by 68%. Now imagine what Silvergate might do in a crypto bull run.
And yes, the stock is on fire sale right now. Mr market brushed Silvergate’s strong business results To focus on the idea that anything in the cryptocurrency sector has to be risky. Share prices are down 43% in 2022, and Silvergate trades at a nominal valuation of 10.7 times forward earnings. This is a great stock to buy today, and maybe buy more if the price drops higher on tap.
anders bylund There are positions in Bitcoin, Coinbase Global, Inc., Ethereum, Fiverr International, and Silvergate Capital Corporation. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Inc., Ethereum and Fiverr International. The Motley Fool recommends Silvergate Capital Corporation. The Motley Fool has one Disclosure Policy,