Market timing is not really an investment. No one knows where the market will go tomorrow, or what a particular stock will do next week. Surprises come all the time, as stock prices move up or down without any prior warning. Betting on short-term price movements is exactly that – a form of gambling. Real investing success comes from buying shares of great companies with great management teams, holding those shares for the long haul, and letting compound returns work their magic.
Having said that, it certainly wouldn’t hurt when these amazing stocks are available at very low prices. This is what I see Fiverr International (FVR -5.48%) And the Silvergate Capital (SI -4.21%) Immediately. And that might not be the absolute market bottom for any of these spring loaded stocks, but they are cheap and you can always buy more if stock prices keep dropping.
Fiverr: Disable the world of work
The world of work is changing before our eyes. For better or worse, the old tradition of creating a career with a 9-5 hour work schedule, pension plans, and a golden hour in retirement is fading away. so called gig economy It nibbles on the ends of that plan, threatening to replace it entirely in some industries.
Fiverr International doesn’t just drive. This company has written entire chapters of the playbook on the temporary jobs economy and continues to innovate. Fiverr is very popular with clients in the small and medium business category, and it recently pushed into the enterprise space with the launch of Fiverr Business. This freelance services marketplace helps buyers identify needs that a qualified freelancer can fill, and provides setup templates for new freelance relationships. The platform is only two years old but already accounts for more than 5% of Fiverr’s gross merchandise value (GMV).
“We believe the opportunity for the online freelancing market is broad and in its infancy,” Fiverr CEO Misha Kaufman said on a recent earnings call. In other words, Fiverr must be able to grow rapidly for many years before entering any meaningful market saturation.
Many market makers seem to have missed that note. Fiverr’s recent growth spurt is widely seen as a direct result of the early coronavirus shutdowns. Inventory is down 89% from mid-February 2021, when COVID-19 vaccines became widely available. At the same time, Fiverr’s sales growth continued to rise, indicating a healthy business. There is a clear disconnect between the company’s high-octane growth and the stock’s dramatic crash:
These are the things that wealth building investments are made of. Fiverr stock is poised for a strong long-term recovery. The path to open this bounce could be bumpy and Fiverr stock could drop even more, but you shouldn’t let that stop you from investing in these attractive stock prices.
Silvergate: The Bank That Makes The Cryptocurrency Market
Cryptocurrencies and cryptocurrency trading services do not stand alone. They have to connect to the traditional banking world to allow individuals and businesses to exchange real world currencies for digital currencies. Silvergate Capital was an early provider of financial services to crypto-based projects, and remains a leading lender in the space today. Furthermore, the company has developed its own technology platform to manage transactions involving cryptocurrencies and fiat currencies. This Silvergate Exchange Network (SEN) is always up and running, providing trading services around the clock and all over the world.
This combination of basic cryptocurrency trading infrastructure and simple old-fashioned capital assets makes Silvergate a unique entry point into the cryptocurrency market. By investing in Silvergate, you can take advantage of the sustainable growth in this sector without choosing any specific winners from among the thousands of blockchains available today. Silvergate and SEN are behind a large number of crypto projects.
For example, this is where MicroStrategy (MSTR -4.89%) Turned when he wanted to sign a secured loan against an existing enterprise analytics company Bitcoin (BTC 0.53%) collectibles. And pretty much every crypto exchange I’ve ever heard of runs on the SEN platform, including Queen Piece (Currency -4.18%)and Kraken, Bitstamp, and Crypto.com.
So Silvergate lets you Take advantage of the crypto market Without directly owning any digital assets, the benefit of running a growing and profitable business. In the second quarter of 2022, the bank’s profits were up 41% year over year along with an 18% increase in assets under management. The SEN system handled $191 billion in cryptocurrency transfers during the quarter. The company achieved these high-quality results in a period when bitcoin prices fell by 57% and Ethereum (ETH 0.92%) It decreased by 68%. Now imagine what Silvergate could do in a bull market for cryptocurrency.
And of course, the stock is now selling fast. Mr. Market ignored Strong Business Results for Silvergate To focus on the idea that anything in the cryptocurrency space should be risky. Stock prices are down 43% in 2022, and Silvergate is trading at a modest valuation of 10.7 times forward earnings. This is a great stock to buy today, and possibly buy more if there are more price drops on click.
Anders Billund He has positions at Bitcoin and Coinbase Global, Inc. and Ethereum, Fiverr International, and Silvergate Capital Corporation. Motley Fool has positions in and recommends Bitcoin and Coinbase Global, Inc. and Ethereum and Fiverr International. Motley Fool recommends Silvergate Capital Corporation. Motley Fool has a profile Disclosure Policy.