The #1 Catalyst for This Week’s Trading

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The stock market will be closed today, and this week will be a relatively quiet week on Wall Street. Nvidia will report earnings on Wednesday – along with the Federal Reserve’s January meeting minutes. Atlanta Fed President Raphael Bostic will also speak on that day. Other than that, there is no other major economic data that will headline this week. Traders are pondering on when the first rate cut could happen. It can have implications for stocks because lower rates mean stocks become more attractive than bonds. And of course, it could stimulate economic growth (and corporate profits). - “Fed rate cuts are likely still not far off, despite mixed comments from top officials,” said Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management. - “While we do not expect the path toward lower inflation and lower rates to be smooth, we maintain the view that a soft landing for the US economy favors quality bonds and equities.” Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management (Photo: Bloomberg) What’s more, there’s a tug-of-war between high sticky inflation (which could delay rate cuts) and strong earnings and economic growth. Wall Street isn’t pricing in persistent inflation yet. Recent red-hot inflation numbers did nothing to pull down the market because earnings have been too strong. So, it will be key for the economy to maintain its strength for the rally to hold its ground. Wall Street can probably handle higher for longer rates as long as earnings growth stays strong. The recent earnings season has delivered just that. So, it might be on the economic data to determine the market’s future direction for a while. Want to buy a top tech stock on a 91% dip? Today’s Stock Pick: Fiverr International Ltd. ([FVRR]( One of the best indicators of a monster stock is whether the company is the “category leader.” First-movers often have the advantage that is difficult to penetrate. For example, WeWork is the category leader in coworking spaces. Airbnb for home rentals. Uber for ridesharing. And so on. Fiverr is the category leader in a new (and huge) market of freelancing. The estimated TAM is a whopping $247 billion. What makes Fiverr unique is its e-commerce approach to the services industry. (Source: Fiverr) You could order products from Amazon with a listed price. Simple and sweet. But what if you want to order a brand logo? In the past, you will need to post a job, interview candidates, and go through all of that headaches. With Fiverr, you can simply purchase a service with a listed price. Imagine if you need to plan a travel. Rather than spending time on researching for your travel itinerary, you can simply purchase a service from a travel agent on Fiverr with wide-ranging price points: (Source: Fiverr.com) Cool, right? Like when e-commerce was in its infancy back in the late 1990s, the market of freelancing is very outdated. In the graph below, you will see how most of the freelancing happens offline – rather than online. You and I know that it’s inevitable for freelancing to go online due to the explosion of hybrid work models. Companies are more comfortable working with people online, and it can only boost the demand for online freelancing. (Source: Fiverr) Network effect: One of the most powerful competitive moats is the network effect. Its value increases as more people join the platform. And it would create a flywheel. If Fiverr sellers see more opportunities on the platform, more freelancers (especially higher quality ones) will join the platform. If the buyers see the immense value of sellers, more buyers will also join the platform. This leads to more demand for services. It would eventually attract more sellers. And the flywheel continues. (Source: Fiverr) Phenomenal revenue growth: Sure enough, Fiverr is growing rapidly. Its revenue grew at an incredible pace of 47% CAGR from 2019 to 2022. During the recent earnings call, Fiverr executives acknowledged the new demand from investors to focus on profitability. (Source: Fiverr) Bottom line: Fiverr is a rare category leader that is still young. Its market cap is just $1.07 billion, but its revenue is growing at a 47% CAGR in the last four years. The growth would slow down a little bit next year due to an economic slowdown. At the same time, this may be already reflected in its stock price as it’s down by 91% from its all-time high. Buy Fiverr if you are looking to buy low on a huge share price dip because of its immense future in the freelancing market. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](