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Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

Etsy Inc. has faced significant challenges recently, particularly with its fourth-quarter gross merchandise sales (GMS) falling short of market expectations, reflecting ongoing weaknesses in consumer discretionary spending. Despite these hurdles, the company reported a notable increase in its take rate for advertising, reaching 22.8%, which helped bolster overall sales figures. The management's strategy to emphasize differentiation in gifting and personalization, coupled with stronger mobile app engagement, is seen as a potential avenue for future GMS growth. Peer performance varies, with Depop achieving impressive GMS growth of 32% while Reverb saw a modest decline. Additionally, Etsy managed to improve its adjusted EBITDA margin by 140 basis points to 29.4%, aided by efforts to mitigate fraudulent seller activity, which may help enhance profitability going forward.

Consensus
Bearish
Valuation
Overvalued
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

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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BUY ON WEAKNESS

Is down 39% this year with a disappointing last quarter, specifically its gross merchandise sales outlook for Q3. 

HOLD

Don't sell it down here. He has faith that the CEO will lift this company. Mergers and acquisitions may have an effect.

HOLD

With shares down 50%, this amounts to great value. It's a one of a kind stock. He would hold on.

BUY ON WEAKNESS

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.

HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

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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BUY
Wall Street has left certain "pandemic" stocks for dead. Why is this considered a pandemic play? Its market cap is way too small. They built a huge platform. Shares should be higher. Etsy has capitalized on a good long-term trend in selling homemade crafts.
BUY
A Covid winner and now a post-Covid buy They recently delivered acceleration across many metrics--here and abroad, raising its transaction fee by 30%. It remains the #1 marketplace for handicrafts online.
WATCH
Shares have been cut in half because of the tech sell-off and investors feel Etsy is linked to the pandemic, that the people who create/sell on Etsy will return to regular jobs after Omicron. He doubts this impact.
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Jun 08/21, Up 8.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ETSY has triggered its stop at $185. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 20%, when combined with our previous recommendation to cover half the position.
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Aug 31/21, Up 17.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ETSY is progressing well. We now recommend trailing up the stop (from $170) to $185.
BUY
The top 5 junior, next-generation growth/tech stocks: #2 Etsy: Where the young can buy presents, environmentally friendly. But this stock is a bumpy ride.
BUY
Stocks roared yesterday after a strong quarter. It's unfairly considered a Covid stock, but its customers are sticking with it. Also, he likes it for being a retail stock without supply chain problems.
WEAK BUY
They report Wednesday. He expects the CEO to say positive things.
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick May 04/21, Up 32.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ETSY is progressing well. It has acheived its objective at $226. To remain disciplined, we recommend covering half the position and trailing up the stop (from $140) to $170. If triggered, this would all but guarantee a combined net investment return over 16%.
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Etsy Inc.(ETSY-Q) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 2

Stockchase rating for Etsy Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

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, 2 stock analysts published opinions about ETSY-Q. 2 analysts recommended to BUY the stock. 0 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?

2 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 2025-03-14, Etsy Inc. (ETSY-Q) stock closed at a price of $45.18.