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FVRR vs. ETSY: Which AI-Powered Creator Marketplace Stock Has an Edge?
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Key Takeaways
Fiverr is expanding beyond gigs into complex, AI-enabled services and managed projects for businesses.
Etsy is using AI to improve discovery and engagement within its consumer-focused goods marketplace.
FVRR trades at a much lower forward earnings multiple than ETSY, despite differing growth pressures.
Fiverr International (FVRR - Free Report) and Etsy (ETSY - Free Report) operate creator-led digital marketplaces connecting independent entrepreneurs with global demand. Fiverr enables the delivery of digital services such as programming, marketing and automation through freelance talent, while Etsy facilitates the sale of handmade, customized and vintage goods through a consumer-focused marketplace. Both platforms scale transactions through algorithm-driven discovery, matching and personalization.
Per MarketsandMarkets, the global AI platform market is expected to witness a CAGR of over 39%, reaching about $94.3 billion by 2030. As AI adoption accelerates across search, recommendation and workflow automation, digital marketplaces are embedding AI more deeply into core operations to improve engagement efficiency and monetization. Fiverr and Etsy are integrating these capabilities within their creator ecosystems to enhance discovery, matching and seller productivity across different transaction models. Let us delve deep to determine which one holds an edge.
The Case for FVRR
Fiverr operates a global freelance services marketplace that connects businesses with independent professionals across categories, including programming, design, digital marketing, writing and video production. The platform supports both task-based services and complex, multistage projects requiring coordination across multiple specialists.
The platform supports both task-based services and complex, multistage projects requiring coordination across multiple specialists. As AI transforms how work is delivered, businesses are seeking specialists in AI agents, workflow automation and vibe coding. This demand is concentrated in Fiverr's Programming and Tech vertical, which represents approximately 20% of the business. The upmarket shift is being driven by Dynamic Matching and Managed Services, which address structurally different use cases than traditional marketplace transactions.
Dynamic Matching generates average order values of $2,200 with 15% of briefs exceeding $1,000 budgets, while Managed Services captures projects averaging $17,000 with minimum budgets of $3,000. Ongoing restructuring efforts are focused on building an AI-native organization and embedding AI-integrated workflows across the buyer journey.
However, near-term momentum remains constrained. Active buyer trends continue to face pressure amid weak small and medium-sized business spending in an uncertain macroeconomic environment. For the fourth quarter, Fiverr expects marketplace revenue to remain flat or decline at low single-digit rates, indicating upmarket gains have not yet offset core customer base softness. Ongoing organizational restructuring introduces execution risk during a period that demands operational consistency.
The Zacks Consensus Estimate for FVRR’s 2025 EPS is pegged at $2.9, unchanged over the past 30days, indicating a 21.85% improvement year over year.
Etsy operates a global marketplace connecting buyers with independent sellers offering handmade goods, vintage items and craft supplies. The platform’s activity is concentrated across home décor, jewellery, clothing, art and personalized gifts, with demand closely tied to discretionary and occasion-driven purchases.
Etsy has expanded AI-powered personalization and discovery tools across its mobile application and web platforms, positioning AI primarily as an engagement-efficiency lever. Machine learning models for buyer and item understanding support the redesigned discovery feed, with the mobile application accounting for 46% of total gross merchandise sales. While app users exhibit higher visit frequency and conversion, these gains have remained largely confined to existing cohorts, limiting platform-wide buyer expansion and wallet share growth. AI investments have focused on incremental engagement improvements rather than enabling sellers to access higher-value transaction categories or unlocking new demand pools. The OpenAI partnership for instant checkout through ChatGPT improves visibility in emerging agentic commerce channels, though early contributions to gross merchandise sales remain marginal.
Structural headwinds continue to weigh on performance beyond the reach of AI enhancements. Active buyer count declined 5% year over year in the third quarter of 2025, with new acquisitions and reactivations insufficient to offset attrition. Etsy marketplace gross merchandise sales declined 2.4% year over year despite sequential improvement, indicating the recovery remains early-stage and fragile. The platform’s narrow exposure to gifting and home décor occasions constrains expansion, while trade policy uncertainty and tariff-related pressures on cross-border sellers add operational friction.
The Zacks Consensus Estimate for ETSY’s 2025 EPS is pegged at $1.31, unchanged over the past 30 days, indicating a 44.26% decline year over year.
Over the past six months, Fiverr’s shares have declined 32%, a steeper drawdown than Etsy’s 5.2% decline. The sharper correction in Fiverr reflects near-term pressure during its transition toward higher-value, AI-driven services, while Etsy’s relatively smaller decline has occurred despite continued weakness in underlying marketplace fundamentals.
FVRR vs. ETSY Price Performance
Image Source: Zacks Investment Research
Fiverr trades at a forward price-to-earnings of 9.2x versus 21.8x for Etsy. This valuation gap appears difficult to justify, given Fiverr’s growing exposure to AI-driven services and continued upmarket traction through Dynamic Matching and Managed Services, while Etsy faces ongoing active buyer declines and limited growth impact from its AI initiatives.
FVRR vs. ETSY Valuation
Image Source: Zacks Investment Research
Conclusion
Fiverr's structural exposure to high-growth AI services demand and upmarket momentum through Dynamic Matching and Managed Services position it favourably against Etsy's AI implementations that remain confined to engagement optimization. While Etsy experiences active buyer contraction and gross merchandise sales declines with AI investments failing to unlock new demand pools, Fiverr demonstrates spend per buyer growth and revenue mix reshaping toward higher-value engagements. Trading at a substantial valuation discount despite superior fundamentals, Fiverr, with a Zacks Rank #3 (Hold), holds an edge over Etsy with a Zacks Rank #4 (Sell).
Image: Bigstock
FVRR vs. ETSY: Which AI-Powered Creator Marketplace Stock Has an Edge?
Key Takeaways
Fiverr International (FVRR - Free Report) and Etsy (ETSY - Free Report) operate creator-led digital marketplaces connecting independent entrepreneurs with global demand. Fiverr enables the delivery of digital services such as programming, marketing and automation through freelance talent, while Etsy facilitates the sale of handmade, customized and vintage goods through a consumer-focused marketplace. Both platforms scale transactions through algorithm-driven discovery, matching and personalization.
Per MarketsandMarkets, the global AI platform market is expected to witness a CAGR of over 39%, reaching about $94.3 billion by 2030. As AI adoption accelerates across search, recommendation and workflow automation, digital marketplaces are embedding AI more deeply into core operations to improve engagement efficiency and monetization. Fiverr and Etsy are integrating these capabilities within their creator ecosystems to enhance discovery, matching and seller productivity across different transaction models. Let us delve deep to determine which one holds an edge.
The Case for FVRR
Fiverr operates a global freelance services marketplace that connects businesses with independent professionals across categories, including programming, design, digital marketing, writing and video production. The platform supports both task-based services and complex, multistage projects requiring coordination across multiple specialists.
The platform supports both task-based services and complex, multistage projects requiring coordination across multiple specialists. As AI transforms how work is delivered, businesses are seeking specialists in AI agents, workflow automation and vibe coding. This demand is concentrated in Fiverr's Programming and Tech vertical, which represents approximately 20% of the business. The upmarket shift is being driven by Dynamic Matching and Managed Services, which address structurally different use cases than traditional marketplace transactions.
Dynamic Matching generates average order values of $2,200 with 15% of briefs exceeding $1,000 budgets, while Managed Services captures projects averaging $17,000 with minimum budgets of $3,000. Ongoing restructuring efforts are focused on building an AI-native organization and embedding AI-integrated workflows across the buyer journey.
However, near-term momentum remains constrained. Active buyer trends continue to face pressure amid weak small and medium-sized business spending in an uncertain macroeconomic environment. For the fourth quarter, Fiverr expects marketplace revenue to remain flat or decline at low single-digit rates, indicating upmarket gains have not yet offset core customer base softness. Ongoing organizational restructuring introduces execution risk during a period that demands operational consistency.
The Zacks Consensus Estimate for FVRR’s 2025 EPS is pegged at $2.9, unchanged over the past 30days, indicating a 21.85% improvement year over year.
Fiverr International Price and Consensus
Fiverr International price-consensus-chart | Fiverr International Quote
The Case for ETSY
Etsy operates a global marketplace connecting buyers with independent sellers offering handmade goods, vintage items and craft supplies. The platform’s activity is concentrated across home décor, jewellery, clothing, art and personalized gifts, with demand closely tied to discretionary and occasion-driven purchases.
Etsy has expanded AI-powered personalization and discovery tools across its mobile application and web platforms, positioning AI primarily as an engagement-efficiency lever. Machine learning models for buyer and item understanding support the redesigned discovery feed, with the mobile application accounting for 46% of total gross merchandise sales. While app users exhibit higher visit frequency and conversion, these gains have remained largely confined to existing cohorts, limiting platform-wide buyer expansion and wallet share growth. AI investments have focused on incremental engagement improvements rather than enabling sellers to access higher-value transaction categories or unlocking new demand pools. The OpenAI partnership for instant checkout through ChatGPT improves visibility in emerging agentic commerce channels, though early contributions to gross merchandise sales remain marginal.
Structural headwinds continue to weigh on performance beyond the reach of AI enhancements. Active buyer count declined 5% year over year in the third quarter of 2025, with new acquisitions and reactivations insufficient to offset attrition. Etsy marketplace gross merchandise sales declined 2.4% year over year despite sequential improvement, indicating the recovery remains early-stage and fragile. The platform’s narrow exposure to gifting and home décor occasions constrains expansion, while trade policy uncertainty and tariff-related pressures on cross-border sellers add operational friction.
The Zacks Consensus Estimate for ETSY’s 2025 EPS is pegged at $1.31, unchanged over the past 30 days, indicating a 44.26% decline year over year.
Etsy, Inc. Price and Consensus
Etsy, Inc. price-consensus-chart | Etsy, Inc. Quote
Price Performance and Valuation of FVRR and ETSY
Over the past six months, Fiverr’s shares have declined 32%, a steeper drawdown than Etsy’s 5.2% decline. The sharper correction in Fiverr reflects near-term pressure during its transition toward higher-value, AI-driven services, while Etsy’s relatively smaller decline has occurred despite continued weakness in underlying marketplace fundamentals.
FVRR vs. ETSY Price Performance
Image Source: Zacks Investment Research
Fiverr trades at a forward price-to-earnings of 9.2x versus 21.8x for Etsy. This valuation gap appears difficult to justify, given Fiverr’s growing exposure to AI-driven services and continued upmarket traction through Dynamic Matching and Managed Services, while Etsy faces ongoing active buyer declines and limited growth impact from its AI initiatives.
FVRR vs. ETSY Valuation
Image Source: Zacks Investment Research
Conclusion
Fiverr's structural exposure to high-growth AI services demand and upmarket momentum through Dynamic Matching and Managed Services position it favourably against Etsy's AI implementations that remain confined to engagement optimization. While Etsy experiences active buyer contraction and gross merchandise sales declines with AI investments failing to unlock new demand pools, Fiverr demonstrates spend per buyer growth and revenue mix reshaping toward higher-value engagements. Trading at a substantial valuation discount despite superior fundamentals, Fiverr, with a Zacks Rank #3 (Hold), holds an edge over Etsy with a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.