Etsy Faces Competitive Pressures Amid Market Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
0mins
Should l Buy ETSY?
Source: Benzinga
ETSY Inc. has seen its stock price drop by 3.11% as it hits a 20-day low, reflecting broader market trends with the Nasdaq-100 down 1.14% and the S&P 500 down 0.63%.
The recent analysis by David Gardner highlights Etsy's challenges in the competitive landscape, particularly against giants like Amazon and Shopify. Despite achieving $182 million in net income over the past year, Etsy's market performance has been under pressure, and analysts suggest that while its investments in AI may offer future potential, the current outlook remains cautious amid economic uncertainties.
As Etsy navigates these challenges, the focus will be on how it can leverage its brand and technological investments to regain market confidence and improve its competitive position.
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Analyst Views on ETSY
Wall Street analysts forecast ETSY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ETSY is 67.71 USD with a low forecast of 52.00 USD and a high forecast of 80.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
6 Buy
18 Hold
2 Sell
Hold
Current: 54.460
Low
52.00
Averages
67.71
High
80.00
Current: 54.460
Low
52.00
Averages
67.71
High
80.00
About ETSY
Etsy, Inc. operates two-sided online marketplaces that connect buyers and sellers around the world. The Company's primary marketplace, Etsy.com, is the global destination for goods made by independent sellers. In addition to its core Etsy marketplace, its House of Brand consists of Depop Limited (Depop), which is its fashion resale marketplace. Each marketplace primarily operates independently, while benefiting from shared expertise in product development, marketing, technology, and customer support. The Company's top six retail categories on the Etsy marketplace include homewares and home furnishings, jewelry and personal accessories, apparel, craft supplies, paper and party supplies, and toys and games.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Importance of Investment Education: Mark successfully sparked his children's interest in stock selection by playing investment games together, with his kids outperforming the market in 2025, demonstrating the significant potential of family education in fostering financial awareness.
- Values and Investment Decisions: An Italian investor explores the duality of Robinhood's tools while contemplating whether to hold its stock, emphasizing the importance of balancing personal values with social impact in investing, reflecting investors' concerns about ethical responsibility.
- Lessons from History: David Gardner reflects on past market fluctuations, highlighting that history is not just nostalgia but a source of confidence for investors, reminding them to maintain patience and optimism in uncertain markets.
- Optimism and Long-Term Investing: Tom shares his journey of wealth accumulation through long-term investing and compounding, emphasizing the key role of patience and a positive mindset in achieving investment success, encouraging more people to believe in their ability to succeed in investing.
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Hussman Strategic Advisors Exits Entire Position in TG Therapeutics
- Position Change: Hussman Strategic Advisors disclosed in an SEC filing that it sold its entire position of 126,000 shares in TG Therapeutics, which previously represented 1.0% of its assets under management, indicating a cautious outlook on the company's future performance.
- Financial Performance: TG Therapeutics reported preliminary fourth-quarter revenue of $182 million for its main product as of January 30, and despite a significant 92.8% year-over-year growth to $161.7 million in the third quarter, the overall performance could not offset the 11.8% decline in its stock over the past year.
- Market Comparison: The underperformance of TG Therapeutics' stock, losing 11.8%, contrasts sharply with the Nasdaq Composite and S&P 500's gains of 20% and 15.8%, respectively, highlighting a lack of competitive edge in the biotechnology sector that may pose higher risks for investors.
- Investor Implications: The complete exit by Hussman suggests a diminishing confidence in TG Therapeutics, prompting investors to closely monitor the company's future strategic partnerships and clinical program developments to assess potential growth opportunities in oncology and immunology markets.
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- Increased Holdings: Hussman Strategic Advisors added 42,000 shares of Etsy in Q4 2025, valued at $2.56 million, raising its total Etsy holdings to $4.66 million, an increase of $1.87 million from the previous quarter, indicating confidence in Etsy's future growth potential.
- Stake Proportion Rise: This purchase brought Hussman's stake in Etsy to 1.13%, making it the fund's second-largest holding, reflecting a strategic emphasis on Etsy's potential in the e-commerce market, despite the core business showing sluggish growth.
- Market Performance: As of January 30, 2026, Etsy shares were priced at $52.96, down 5.53% over the past year, underperforming the S&P 500 by 18 percentage points, indicating market caution regarding its future growth prospects.
- Growth Potential: While Etsy's core marketplace growth is slow, its secondhand fashion app, Depop, achieved 39% GMS growth in Q3, with the U.S. market growing even faster at 59%, showcasing Etsy's success in diversifying its business, which may support future shareholder returns.
See More
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- E-commerce Market Trend: The rise of online shopping has been a significant economic trend over the past decades, and while physical retail still dominates spending in the U.S., the growth momentum of the e-commerce sector remains strong, attracting investor interest in potential opportunities.
- Etsy Valuation Advantage: With a price-to-sales ratio of 2.3, Etsy's valuation is at a historically attractive point, rarely seen in the past decade, highlighting a unique investment opportunity, especially in competition with Amazon.
- Unique Market Positioning: Etsy focuses on unique, handcrafted, and vintage goods, with a 2023 survey indicating that 83% of buyers believe its marketplace offers items they can't find elsewhere, helping it stand out in the e-commerce space and create a strong network effect.
- Financial Challenges and Risks: Despite Etsy's strong market positioning, its gross merchandise sales for Q3 2025 were $2.4 billion, down 11% year-over-year, coupled with rising expenses, indicating fundamental weaknesses that warrant caution for investors.
See More
Etsy Stock Down 82% from Peak, Caution Advised for Investors
- Unique Market Position: Etsy differentiates itself from Amazon by offering unique handcrafted and vintage goods, with a 2023 survey indicating that 83% of buyers believe its marketplace features items they can't find elsewhere, providing a competitive edge in the crowded e-commerce space.
- Declining Financial Performance: Despite Etsy's attractive price-to-sales ratio of 2.3, its gross merchandise sales for Q3 2025 were $2.4 billion, an 11% decline year-over-year, indicating reduced consumer spending on discretionary items, which negatively impacts revenue growth.
- Rising Cost Pressures: Increased expenses in product development and marketing are challenging Etsy's growth potential, despite its asset-light business model, leading investors to be cautious about the company's financial health.
- Cautious Investment Advice: While Etsy's stock appears cheap, analysts recommend waiting for clear fundamental improvements before investing, particularly in light of the overall slowdown in e-commerce growth.
See More
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- Case Studies: During the discussion of Etsy and Duolingo, analysts scored each company on profitability, cash flow, and brand recognition, noting that Etsy achieved $182 million in net income over the past 12 months, while Duolingo reached approximately $386 million.
- Market Competition Analysis: Etsy faces pressure from competitors like Amazon and Shopify, although it retains some brand influence in the crafts market; Duolingo, on the other hand, leads the language learning market with over 50% brand awareness.
- Future Outlook: Analysts believe that while Etsy's market performance has declined, its investments in AI and other technologies could serve as positive catalysts in the future, whereas Duolingo must be wary of potential threats from AI to its business model.
See More
Navigating Values in Investing Decisions
- Importance of Investment Education: Mark successfully sparked his children's interest in stock selection by playing investment games together, with his kids outperforming the market in 2025, demonstrating the significant potential of family education in fostering financial awareness.
- Values and Investment Decisions: An Italian investor explores the duality of Robinhood's tools while contemplating whether to hold its stock, emphasizing the importance of balancing personal values with social impact in investing, reflecting investors' concerns about ethical responsibility.
- Lessons from History: David Gardner reflects on past market fluctuations, highlighting that history is not just nostalgia but a source of confidence for investors, reminding them to maintain patience and optimism in uncertain markets.
- Optimism and Long-Term Investing: Tom shares his journey of wealth accumulation through long-term investing and compounding, emphasizing the key role of patience and a positive mindset in achieving investment success, encouraging more people to believe in their ability to succeed in investing.
See More
Hussman Strategic Advisors Exits Entire Position in TG Therapeutics
- Position Change: Hussman Strategic Advisors disclosed in an SEC filing that it sold its entire position of 126,000 shares in TG Therapeutics, which previously represented 1.0% of its assets under management, indicating a cautious outlook on the company's future performance.
- Financial Performance: TG Therapeutics reported preliminary fourth-quarter revenue of $182 million for its main product as of January 30, and despite a significant 92.8% year-over-year growth to $161.7 million in the third quarter, the overall performance could not offset the 11.8% decline in its stock over the past year.
- Market Comparison: The underperformance of TG Therapeutics' stock, losing 11.8%, contrasts sharply with the Nasdaq Composite and S&P 500's gains of 20% and 15.8%, respectively, highlighting a lack of competitive edge in the biotechnology sector that may pose higher risks for investors.
- Investor Implications: The complete exit by Hussman suggests a diminishing confidence in TG Therapeutics, prompting investors to closely monitor the company's future strategic partnerships and clinical program developments to assess potential growth opportunities in oncology and immunology markets.
See More
Hussman Increases Etsy Stake to 1.13% of AUM
- Increased Holdings: Hussman Strategic Advisors added 42,000 shares of Etsy in Q4 2025, valued at $2.56 million, raising its total Etsy holdings to $4.66 million, an increase of $1.87 million from the previous quarter, indicating confidence in Etsy's future growth potential.
- Stake Proportion Rise: This purchase brought Hussman's stake in Etsy to 1.13%, making it the fund's second-largest holding, reflecting a strategic emphasis on Etsy's potential in the e-commerce market, despite the core business showing sluggish growth.
- Market Performance: As of January 30, 2026, Etsy shares were priced at $52.96, down 5.53% over the past year, underperforming the S&P 500 by 18 percentage points, indicating market caution regarding its future growth prospects.
- Growth Potential: While Etsy's core marketplace growth is slow, its secondhand fashion app, Depop, achieved 39% GMS growth in Q3, with the U.S. market growing even faster at 59%, showcasing Etsy's success in diversifying its business, which may support future shareholder returns.
See More
Etsy Stock Valuation Attractive; Investors Should Consider
- E-commerce Market Trend: The rise of online shopping has been a significant economic trend over the past decades, and while physical retail still dominates spending in the U.S., the growth momentum of the e-commerce sector remains strong, attracting investor interest in potential opportunities.
- Etsy Valuation Advantage: With a price-to-sales ratio of 2.3, Etsy's valuation is at a historically attractive point, rarely seen in the past decade, highlighting a unique investment opportunity, especially in competition with Amazon.
- Unique Market Positioning: Etsy focuses on unique, handcrafted, and vintage goods, with a 2023 survey indicating that 83% of buyers believe its marketplace offers items they can't find elsewhere, helping it stand out in the e-commerce space and create a strong network effect.
- Financial Challenges and Risks: Despite Etsy's strong market positioning, its gross merchandise sales for Q3 2025 were $2.4 billion, down 11% year-over-year, coupled with rising expenses, indicating fundamental weaknesses that warrant caution for investors.
See More
Etsy Stock Down 82% from Peak, Caution Advised for Investors
- Unique Market Position: Etsy differentiates itself from Amazon by offering unique handcrafted and vintage goods, with a 2023 survey indicating that 83% of buyers believe its marketplace features items they can't find elsewhere, providing a competitive edge in the crowded e-commerce space.
- Declining Financial Performance: Despite Etsy's attractive price-to-sales ratio of 2.3, its gross merchandise sales for Q3 2025 were $2.4 billion, an 11% decline year-over-year, indicating reduced consumer spending on discretionary items, which negatively impacts revenue growth.
- Rising Cost Pressures: Increased expenses in product development and marketing are challenging Etsy's growth potential, despite its asset-light business model, leading investors to be cautious about the company's financial health.
- Cautious Investment Advice: While Etsy's stock appears cheap, analysts recommend waiting for clear fundamental improvements before investing, particularly in light of the overall slowdown in e-commerce growth.
See More
David Gardner Analyzes Risk Rating System
- Risk Rating System Overview: David Gardner introduces his 25-point risk rating system, used for over a decade, aimed at replacing vague risk labels with concrete, quantifiable numbers to help investors better understand investment risks.
- Case Studies: During the discussion of Etsy and Duolingo, analysts scored each company on profitability, cash flow, and brand recognition, noting that Etsy achieved $182 million in net income over the past 12 months, while Duolingo reached approximately $386 million.
- Market Competition Analysis: Etsy faces pressure from competitors like Amazon and Shopify, although it retains some brand influence in the crafts market; Duolingo, on the other hand, leads the language learning market with over 50% brand awareness.
- Future Outlook: Analysts believe that while Etsy's market performance has declined, its investments in AI and other technologies could serve as positive catalysts in the future, whereas Duolingo must be wary of potential threats from AI to its business model.
See More
