Fiverr and Angi: The AI Panic Sell-Off and What Search Volume Tells Us

The market's latest jolt came from a viral sentiment event: a broad "AI Panic" sell-off. Fears that rapidly advancing 'agentic AI' tools could dismantle traditional Software-as-a-Service business models sparked indiscriminate selling across the sector. This wasn't a slow creep; it was a sharp reaction to a specific news cycle, making it a classic case of headline risk driving capital flows.

The intensity was clear in the moves. Yesterday, Fiverr fell 7.3% and Angi fell 2.3%. For Fiverr, that drop was particularly notable given its already-volatile nature, with 19 moves over 5% in the past year. The sell-off reflects how quickly investor sentiment can shift when a major technological trend threatens a company's core model.

This panic didn't emerge in a vacuum. Search volume tells the story of a trending topic. While specific 2026 spikes aren't detailed here, the fact that this news cycle triggered such a sharp market move indicates that "AI" and related terms were indeed spiking in early 2026, turning a theoretical risk into a viral market event. The key near-term catalyst for Fiverr is now in sight: its February 18, 2026 earnings report. That release will be the test for its AI story, forcing investors to decide if the company's pivot to higher-value, AI-enhanced services can offset pressure on simpler gigs and justify its current valuation.

Fiverr: The AI Services Bet on Trial

Fiverr is the main character in the AI narrative, and its stock performance tells the story of a market betting on a high-stakes pivot. The company has shown remarkable momentum, with a 1-year total shareholder return of 57.98%. Yet that strength is now shadowed by deep skepticism. Shares trade at a steep 59% discount to their 52-week high, a gap that signals investors are weighing the promise of AI against persistent doubts about growth.

The core market narrative is clear: can AI-enhanced freelance services offset pressure on simpler gigs and support higher margins? This is the bet Fiverr is making. The stock's year-to-date gain of 29.88% shows the market is still leaning in, but the recent pullback ahead of its February 18 earnings report reveals how sensitive it is to headline risk. Every piece of news about AI adoption or buyer sentiment can now move the needle.

The setup is a classic tension between a viral story and a skeptical reality. On one hand, the narrative fair value estimate is a striking $43.33, implying a massive upside. On the other, the stock's all-time high of $323.10 from 2021 is a distant memory, and the company is still grappling with sluggish marketplace revenue and buyer growth. The upcoming earnings report is the immediate test. It must show that the AI services bet is translating into the richer buyers, thicker margins, and higher take rate needed to justify that lofty valuation gap. For now, Fiverr is a stock where the AI story is everything, and the next few days will prove if it's enough.

Angi: A Sector Play in a Fading Trend

While Fiverr is the star of the AI narrative, Angi's recent slide is a reminder that this sell-off is a broad sector trend. The company's own story is one of improving profitability, but that positive news was completely overshadowed by the viral sentiment. In February, Angi reported that fourth-quarter 2025 net income improved to US$7.22 million from a net loss of US$1.29 million, even as sales fell to US$240.77 million. The market's reaction was a stark 15.97% drop, a move that aligns more with the sweeping AI panic than with any specific Angi catalyst.

This makes Angi a classic passive sector play in a fading trend. Its results show the company is successfully trimming costs and boosting earnings per share, a move that should theoretically support the stock. The completion of a $37.3 million share buyback that retired 7.32% of its float is a direct bet on that EPS improvement. Yet, in the current news cycle, those fundamentals were drowned out. The sell-off is a pure reflection of headline risk, where any company perceived as vulnerable to AI disruption gets caught in the crossfire.

The bottom line is that Angi's story is not about a sudden earnings beat. It's about a company navigating a mature, revenue-muted business while investors panic over a distant technological threat. Its steep decline is a signal that market attention is elsewhere, chasing the AI narrative. For Angi, the path back to relevance will require its own catalyst, not just a sector-wide mood swing.

Catalysts & What to Watch

The market is now waiting for concrete numbers to separate the AI panic from the underlying business reality. For Fiverr, the immediate catalyst is clear: its February 18, 2026 earnings report. This release is the definitive test. Investors need to see if the company's pivot to higher-value, AI-enhanced services is translating into the promised margin expansion and richer buyer behavior. The consensus expects an 18.75% year-over-year EPS increase, but the real focus will be on the quality of that growth and the trajectory of its AI-driven services like Fiverr Go. Any miss on these metrics could validate the sell-off, while a strong beat could signal the panic was overdone.

Beyond the numbers, search volume trends will be a real-time gauge of whether the viral sentiment fades. Monitoring spikes in terms like "AI" and "Fiverr" will show if the market's attention is shifting back to fundamentals or if the AI disruption narrative continues to drive sector rotation. The company's own 2025 search spikes offer a historical benchmark for what a viral trend looks like in its ecosystem.

For Angi, the watchpoint is different. Its story is one of profitability improvement despite a fading top line. The key will be whether its fourth-quarter 2025 sales decline to $240.77 million stabilizes. Any further revenue erosion could challenge the narrative that its buyback and cost cuts are enough to support the stock, especially if home improvement demand softens. The $37.3 million share buyback is a powerful signal of confidence, but it's a balance sheet move that can only paper over a deteriorating revenue trend for so long. The bottom line for both stocks is that the next few days will prove if the AI sell-off was a temporary overreaction or the start of a longer, more fundamental trend.