Oppenheimer: buy this ‘work-from-home’ stock on the weakness

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Dec 6, 2021
  • Jason Helfstein says the massive decline in Fiverr stock is a buying opportunity.
  • He states his reasons for being bullish on the stock on CNBC's "Halftime Report".
  • The Oppenheimer analyst also sees opportunity in the hard hit Roku Inc.

Fiverr International Ltd (NYSE: FVRR) benefitted greatly from the global pandemic that lifted its stock from $22 and shot it up to $323 within twelve months. Shares have since tanked more than 60%, which makes up for a fantastic buying opportunity, says Oppenheimer’s Jason Helfstein.

Helfstein’s remarks on CNBC’s ‘The Exchange’

Now that concerns related to the new Omicron variant are on the rise, it is conceivable that FVRR will regain strength in the coming months. Making a bullish case for the work-from-home stock, Helfstein said on CNBC’s “Halftime Report”:

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At one point, Fiverr was trading at over 25 times forward sales; now it’s 12. They have roughly 4 million customers at only 10% penetration of the market. So, right now, that’s a stock that we think should be bought on the weakness.

Last month, Fiverr reported its financial results for the third quarter that topped Wall Street estimates and raised its guidance for the full year.

What else does he like in the mid-cap space?

Another name that pops out to him in the mid-cap space is Roku Inc (NASDAQ: ROKU). Much like Fiverr, the media company is also down nearly 60% in the stock market from its year-to-date high and Helfstein is convinced now is when you buy.

Roku benefitted from its first-mover advantage in the United States. Internationally, even if it’s the second or third player at this point, that’s fine. We think you can still make money from this stock.

His outlook differs significantly from Jim Cramer’s, who said last month, “every time I look at Roku, I want to sell it”. The California-based company gave weak guidance for the holiday quarter in early November.

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