Thinking About Fiverr And Upwork Pair Trade, Think Kahneman

We looked at Fiverr International Ltd. (NASDAQ: FVRR) and Upwork Inc. (NASDAQ: UPWK) as a pair trade, i.e. going Long Upwork and Shorting Fiverr, but Daniel Kahneman inspired ‘Type 2’ thinking helped us conclude that it isn’t as good a trade as a first look at the two stocks and their respective valuations may want us to believe, especially if the market continues to favor growth. Why did we bother?   Next Yr. PE P/ Sales Current Yr. Sales 2019 Enterprise Value ($M) EV/ next yr. sales Fiverr  210.3  25…

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