G'day folks and welcome to another trading day with your friendly, neighbourhood CMC Market Analyst!
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Azeem Sheriff - @Azeem__Sheriff
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Trading Idea of the Day
NYSE:FVRR - Fiverr International Ltd - BULLISH BIAS (long term)
- Key levels on the chart - consider taking trades from key support/resistance zones.
- Fiverr is a small company that is tackling big things. Despite being valued at $1.2 Billion, Fiverr is the world’s largest platform for hiring freelancers to do anything from graphic design to data analysis.
- Fiverr takes what’s traditionally a difficult process for small businesses - approaching freelancers to complete specific and often one-off tasks - and makes it substantially less impactful on time and finances. Business owners can engage with freelancers on Fiverr with requests for work to be done with set parameters on budget, delivery time and expertise.
- Fiverr has been loss-making to-date and is expected to continue being loss-making for some time which has put off traditional investors looking for profitable companies and value. Fiverr’s business model is predicated on reinvesting all spare cash into marketing to acquire increasingly large cohorts of buyers on the platform. Over the last few years, Fiverr’s marketing spend exploded from $11.7 Billion in 2018 to $44.3 Billion in Q2 2022.
- The growing marketing spend means the number of users on the platform is exploding as well. Fiverr’s quarterly filings show that customers acquired during any quarter tend to pay back the performance marketing budget in the following quarter. Older cohorts and trends within more recent ones show that once acquired, customers tend to be very sticky which means the customers of every quarter yield strong revenues for years into the future.
ASX & Economic Key Events
ASX Key Events Calendar (TODAY)
Economic Key Events (TODAY)
Economic Key Events (YESTERDAY)
OPTO For Investors Research
Article of the Day: Can Q3 earnings reverse the Tesla share price decline?
Podcast of the Day: Market strategist Kiril Sokoloff’s thematic investment radar
APAC Daily Report
Click here to access our daily APAC report, prepared by my fellow market analyst @TinaTeng_CMC
Market Snapshot & Highlights as of 8am AEDT
EXPECTATIONS: Energy LOWER (lower oil/nat gas) & Materials LOWER on overall commodity prices.
Global Markets Headlines
Netflix crushes expectations across the board, adds 2.41 million subscribers (CNBC)
Britain’s failed tax experiment will leave economic scars and credibility issues, analysts say (CNBC)
EU could impose sanctions on Iran in a few days over alleged drone supplies to Russia, sources say (CNBC)
UK Prime Minister Liz Truss faces pressure to resign after failed budget (CNBC)
Apple stock ticks down on report of cut to iPhone 14 Plus production (CNBC)
Facebook parent Meta admits defeat after $400 million Giphy deal is blocked by UK regulators (CNBC)
Goldman shares jump after topping analysts’ expectations on strong bond trading results (CNBC)
(All news & data sourced from AFR / The Australian / Bloomberg / Reuters / CNBC / Wall Street Journal / Morningstar / OPTO / Trading Economics)