Shares of Fiverr International Ltd. (FVRR), the online freelancing platform, plummeted by over 5.5% in pre-market trading on Friday, November 4th, after BTIG, a respected financial research firm, downgraded the stock from "Buy" to "Neutral" and removed it from their "Top Pick" list for the second half of 2024.

The downgrade by BTIG, which cited a shift in Fiverr's risk-reward profile and limited upside potential, sent shockwaves through the investment community and triggered a sell-off in the company's stock. BTIG analysts expressed concerns about several factors, including a muted outlook for hiring in small-to-medium-sized businesses in 2025, potential impacts from artificial intelligence innovations, and a slowdown in freelance job postings after a mid-summer boost.

Additionally, BTIG noted that Fiverr's current valuation, at around 10 times its estimated adjusted EBITDA for fiscal year 2025, aligned with industry averages and reflected fair market value. The analysts emphasized that recent gains in the stock price were primarily due to multiple expansion rather than substantial growth in projected earnings.