Fiverr Stock vs. Upwork Stock: Which is the Better Stock to Buy?

SUMMARY

Parkev Tatevosian, CFA, compares Fiverr and Upwork, two leading gig economy platforms, as their stock prices decline sharply in 2026 due to concerns over artificial intelligence. He analyzes their financial performance, business models, and the potential for AI to both challenge and benefit these companies, ultimately rating both as buys but favoring Upwork for its established presence with small and medium-sized enterprises.

MAIN POINTS

• Fiverr and Upwork stocks have dropped significantly in 2026, with investors questioning their investability amid AI risks. [0:00]
• Both companies have shown strong historical revenue growth despite recent headwinds from artificial intelligence. [1:02]
• Gig economy platforms provide flexibility for both workers and businesses, helping small businesses manage temporary demand. [3:01]
• AI expertise may drive more businesses to hire freelancers through these platforms for implementation and maintenance of automation. [4:01]
• Fiverr and Upwork have improved profitability, and their current valuations are low, reflecting market fears of AI-driven decline. [5:00]
• Upwork is favored slightly over Fiverr due to its stronger relationships with small and medium-sized enterprises, though both are rated as buys. [7:01]

DETAILED ANALYSIS

Fiverr and Upwork, two prominent gig economy platforms, have experienced substantial stock price declines in 2026, with Fiverr down over 45% and Upwork down 54%. This downturn is largely attributed to investor concerns about the impact of artificial intelligence on their business models. Despite these challenges, both companies have demonstrated impressive revenue growth over recent years.

Upwork's revenue has more than tripled from approximately $250 million in 2019 to $790 million, while Fiverr's revenue has increased from around $100 million in 2020 to $429 million over the trailing twelve months. These figures indicate that, although AI presents a headwind, the platforms have benefited from strong underlying demand.

The gig economy model offers significant advantages for both sides of the marketplace. Workers value the flexibility to choose assignments and set their own schedules, while businesses benefit from the ability to meet temporary increases in demand without committing to permanent hires. This is particularly advantageous for small and medium-sized enterprises that may lack the resources to hire full-time staff or use traditional temp agencies.

As AI adoption accelerates, many small business owners may turn to platforms like Fiverr and Upwork to find freelancers with specialized AI skills to implement and maintain automation solutions. This dynamic could create new opportunities for these platforms, offsetting some of the negative effects of AI-driven automation.

Financially, both companies have improved their profitability. Fiverr's operating margin has shifted from -30% to 2.6%, and Upwork, after implementing cost reductions in late 2022, has seen its operating margin rise to 15.6%. Their forward price-to-earnings ratios—5.2 for Fiverr and 5.9 for Upwork—suggest that the market is pricing in significant future declines, which may be overly pessimistic.

These low valuations could make the stocks attractive, especially as a hedge for investors with heavy exposure to AI-focused companies. Ultimately, while both stocks are rated as buys, Upwork is preferred due to its established relationships with small and medium-sized enterprises and its larger scale, which may help it better navigate ongoing industry changes.

LINKS

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