Etsy sees growth amid AI referral surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 12 hours ago
0mins
Should l Buy ETSY?
Source: NASDAQ.COM
ETSY Inc's stock rose by 5.02% as it crossed above the 5-day SMA, reflecting positive market conditions. The surge in AI referrals, with a reported increase of over 1600% for U.S. retailers including Etsy, highlights the growing influence of AI in product discovery and consumer engagement. This trend is expected to enhance traffic and sales for Etsy, aligning with broader retail growth driven by AI technologies.
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Analyst Views on ETSY
Wall Street analysts forecast ETSY stock price to rise
26 Analyst Rating
6 Buy
18 Hold
2 Sell
Hold
Current: 44.360
Low
52.00
Averages
67.71
High
80.00
Current: 44.360
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.
Etsy to Announce Q4 Earnings on February 19
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- Historical Performance Review: Over the past year, Etsy has not missed EPS estimates, achieving a 0% miss rate, while successfully exceeding revenue estimates 75% of the time, indicating stability in revenue growth, although poor EPS performance may dampen market sentiment.
- Expectation Adjustment Dynamics: In the last three months, EPS estimates have seen 2 upward revisions and 1 downward revision, while revenue estimates experienced 5 upward revisions and 1 downward revision, suggesting a divergence in analyst outlooks on Etsy's future performance, which could influence investor decisions.
- Stock Buyback Plan: Etsy recently increased its stock repurchase agreement by $750 million and appointed an independent director, reflecting the company's confidence in its stock value and potentially boosting market expectations regarding its future growth potential.
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- Positive Market Reaction: Etsy's shares surged 14.83% in after-hours trading, reaching $50.55 per share, reflecting investor optimism regarding the transaction and indicating strong market confidence in Etsy's future growth potential.
- Strong Growth Momentum for Depop: Depop is projected to achieve approximately $1 billion in annual gross merchandise sales by 2025, with nearly 60% year-over-year growth in the U.S., highlighting its popularity among younger consumers and enhancing the strategic value of the transaction.
- Clear Future Outlook: Etsy CEO Kruti Patel Goyal stated that this transaction allows the company to focus on growth opportunities within the Etsy marketplace, emphasizing the commitment to enhancing buyer and seller experiences, which is expected to yield positive returns for shareholders.
See More
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- eBay's Acquisition: eBay plans to acquire Depop, a popular secondhand clothing platform among Gen Z, for $1.2 billion in cash.
- Source of Acquisition: The purchase is being made from Etsy, an online marketplace known for handmade and vintage items.
See More
Etsy Sells Depop to eBay for $1.2 Billion, Shares Surge
- Significant Transaction Value: Etsy announced the sale of its secondhand clothing platform Depop to eBay for approximately $1.2 billion in cash, a notable increase from the $1.62 billion it paid five years ago, reflecting strong market interest and growth potential in the secondhand clothing sector.
- Youthful User Base: With about 90% of Depop's users under the age of 34, this transaction allows Etsy to focus on its core marketplace, further attracting younger buyers and enhancing its competitive position in the rapidly growing secondhand market.
- Strategic Shift: Etsy has acquired several niche online marketplaces in recent years as part of a
See More
Etsy to Announce Q4 Earnings on February 19
- Earnings Announcement Schedule: Etsy (ETSY) is set to announce its Q4 earnings on February 19 before market open, with consensus EPS estimate at $1.36 and revenue expected to reach $884 million, reflecting a 3.7% year-over-year growth, marking a significant moment for financial transparency and investor confidence.
- Historical Performance Review: Over the past year, Etsy has not missed EPS estimates, achieving a 0% miss rate, while successfully exceeding revenue estimates 75% of the time, indicating stability in revenue growth, although poor EPS performance may dampen market sentiment.
- Expectation Adjustment Dynamics: In the last three months, EPS estimates have seen 2 upward revisions and 1 downward revision, while revenue estimates experienced 5 upward revisions and 1 downward revision, suggesting a divergence in analyst outlooks on Etsy's future performance, which could influence investor decisions.
- Stock Buyback Plan: Etsy recently increased its stock repurchase agreement by $750 million and appointed an independent director, reflecting the company's confidence in its stock value and potentially boosting market expectations regarding its future growth potential.
See More
Walmart Earnings Preview and Market Insights
- Walmart Earnings Expectations: Analysts anticipate that Walmart's fourth-quarter net sales will rise approximately 4%, with operating income potentially climbing as much as 11%, indicating a strong holiday performance that will further solidify its market dominance.
- Digital Growth Drivers: Strong pricing strategies and digital momentum are seen as key factors driving performance growth, while the advertising segment may also support gross margin improvements, showcasing Walmart's success in diversifying its revenue streams.
- Klarna Earnings Focus: Klarna is set to release its fourth-quarter and first annual report, with analysts expecting volume growth around 21% and revenue gains near 25%, which will be a crucial indicator of its ability to sustain growth amid intensifying competition in the payments market.
- Labor Market Data: Economists forecast that initial jobless claims for the week ending February 14 will reach 225,000, slightly down from the previous week, providing important insights into labor market health that could influence investor sentiment regarding economic outlook.
See More
Multiple Companies Shine in After-Hours Trading
- DoorDash Order Growth: DoorDash reported a 32% year-over-year increase in total orders and a 38% rise in revenue for Q4, leading to a 10% stock price jump despite missing overall earnings expectations, indicating market confidence in its growth potential.
- Figma's Strong Performance: Figma's adjusted earnings of 8 cents per share and revenue of $303.8 million in Q4 surpassed analyst expectations, with a 40% year-over-year growth, resulting in a 16% stock price increase, showcasing its robust competitiveness in the design software market.
- Etsy Transaction Dynamics: Etsy's agreement to sell Depop for $1.2 billion in cash led to a nearly 16% stock price increase, while eBay's stock rose over 6%, reflecting positive market sentiment towards the transaction and its potential to strengthen Etsy's market position.
- Carvana Earnings Decline: Carvana's adjusted EBITDA of $511 million fell short of the $539.2 million expected by analysts, causing a 15% drop in stock price, highlighting concerns over its profitability and market performance.
See More
Etsy to Sell Depop to eBay for $1.2 Billion
- Significant Transaction Value: Etsy has entered into a definitive agreement with eBay to sell its fashion marketplace Depop for approximately $1.2 billion in cash, which will provide Etsy with funds for general corporate purposes, ongoing share repurchases, and investments in its core marketplace, thereby enhancing financial flexibility.
- Positive Market Reaction: Etsy's shares surged 14.83% in after-hours trading, reaching $50.55 per share, reflecting investor optimism regarding the transaction and indicating strong market confidence in Etsy's future growth potential.
- Strong Growth Momentum for Depop: Depop is projected to achieve approximately $1 billion in annual gross merchandise sales by 2025, with nearly 60% year-over-year growth in the U.S., highlighting its popularity among younger consumers and enhancing the strategic value of the transaction.
- Clear Future Outlook: Etsy CEO Kruti Patel Goyal stated that this transaction allows the company to focus on growth opportunities within the Etsy marketplace, emphasizing the commitment to enhancing buyer and seller experiences, which is expected to yield positive returns for shareholders.
See More
eBay Acquires Depop, the Popular Secondhand Clothing Platform Among Gen Z, for $1.2 Billion
- eBay's Acquisition: eBay plans to acquire Depop, a popular secondhand clothing platform among Gen Z, for $1.2 billion in cash.
- Source of Acquisition: The purchase is being made from Etsy, an online marketplace known for handmade and vintage items.
See More
Etsy Sells Depop to eBay for $1.2 Billion, Shares Surge
- Significant Transaction Value: Etsy announced the sale of its secondhand clothing platform Depop to eBay for approximately $1.2 billion in cash, a notable increase from the $1.62 billion it paid five years ago, reflecting strong market interest and growth potential in the secondhand clothing sector.
- Youthful User Base: With about 90% of Depop's users under the age of 34, this transaction allows Etsy to focus on its core marketplace, further attracting younger buyers and enhancing its competitive position in the rapidly growing secondhand market.
- Strategic Shift: Etsy has acquired several niche online marketplaces in recent years as part of a
See More
