Etsy Inc. (ETSY-Q)
NASDAQ:ETSY
45.08
0.78
(1.76%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
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This summary was created by AI, based on 2 opinions in the last 12 months.
Etsy Inc. (ETSY-Q) has faced challenges in recent quarters, with its gross merchandise sales (GMS) trailing expectations, particularly in 4Q. The overall consumer sentiment has been weak, affecting discretionary spending, which is crucial for Etsy's business model. On a positive note, the company reported a higher take rate of 22.8% due to strong advertising performance, which helped mitigate some sales declines. Additionally, the company is focusing on differentiation strategies, specifically in gifting and personalization, which may drive GMS growth in the long run. While peer competitors like Depop have seen significant growth, Etsy is also optimistic about addressing issues like fraud, as indicated by an improvement in its adjusted EBITDA margin. However, the stock is currently down 39% for the year, indicating ongoing volatility and investor concerns about its short-term outlook.
They reported a record buyer count. They're not growing fast enough to be a growth stock, but not cheap enough to be a value stock, a common problem. All told, they will be one of the top e-commerce platforms survivors that can grow steadily in the future. Trades at a reasonable 27x PE and will grow earnings 15% next year (predicted). We face market weakness ahead, so buy this on the way down.
ETSY was under pressure recently after the earning release and is now trading at 17x times' Forward P/E. In the 2Q, ETSY’s revenue grew 7.5% to $629M, beating estimates of $617M and EPS was $1.47 beating estimates of $0.90. The balance sheet has a net debt of $1.3B and net debt/EBITDA is around 3.0x, the balance sheet is quite leveraged here. In addition, there was an asset impairment charge of around $68M in the quarter, and operating expenses grew faster than revenue at around 28%, weak guidance, and management expected growth in the next quarter in the mid-single-digit range. However, based on consensus estimates, sales are expected to grow by 10% - 12% over the next few years, so still a healthy runway for growth. Overall, the quarter is not impressive. Although the drop in share price makes sense due to the short-term headwinds, we would be comfortable holding the name given ETSY is repurchasing shares aggressively.
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Etsy Inc.(ETSY-Q) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 2
Neutral - Hold Signals / Votes : 2
Bearish - Sell Signals / Votes : 2
Total Signals / Votes : 6
Etsy Inc.(ETSY-Q) Frequently Asked Questions
What is Etsy Inc. stock symbol?
Etsy Inc. is a American stock, trading under the symbol ETSY-Q on the NASDAQ (ETSY). It is usually referred to as NASDAQ:ETSY or ETSY-Q
Is Etsy Inc. a buy or a sell?
In the last year, 6 stock analysts published opinions about ETSY-Q. 2 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Etsy Inc..
Is Etsy Inc. a good investment or a top pick?
Etsy Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Etsy Inc..
Why is Etsy Inc. stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Etsy Inc. worth watching?
6 stock analysts on Stockchase covered Etsy Inc. In the last year. It is a trending stock that is worth watching.
What is Etsy Inc. stock price?
On 2025-05-05, Etsy Inc. (ETSY-Q) stock closed at a price of $45.08.
Its 4Q gross merchandise sales (GMS) and 1Q outlook trailed consensus on continued weakness in discretionary consumer spending. A higher take rate of 22.8% on ads strength did aid sales. A renewed focus on differentiation, gifting and personalization, along with greater mobile app use, may spur GMS longer term, with both gifting and personalization GMS growth outperforming. Depop's (peer to peer shopping) GMS surged 32% in 4Q, outpacing recommerce peers. Reverb's GMS fell just 2.6%. Adjusted Ebitda margin rose 140 bps in 4Q to 29.4%, on lower fraud as Etsy works to remove fraudulent sellers.
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