Etsy Sells Secondhand Clothing Business to eBay for $1.2 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
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Should l Buy ETSY?
Source: Fool
- Asset Sale Agreement: Etsy has agreed to sell its secondhand clothing marketplace, Depop, to eBay for $1.2 billion in cash, resulting in a more than 9% increase in Etsy's stock price, reflecting positive market sentiment towards this strategic move.
- Strong User Base: Depop is popular among younger consumers, boasting 7 million active buyers and 3 million sellers, with annual gross merchandise sales in the U.S. surging nearly 60% in 2025, reaching approximately $1 billion globally, indicating robust momentum in the secondhand fashion market.
- Focus on Core Business: By selling Depop, Etsy can concentrate on expanding its e-commerce marketplace for unique and creative goods, with the expected $1.2 billion cash inflow representing about a quarter of its current market capitalization, which will be used for growth initiatives and stock buybacks.
- Future Growth Potential: eBay's CEO stated that Depop will be better positioned for long-term growth under eBay's umbrella, leveraging eBay's scale and operational capabilities to further solidify its market position in the pre-loved fashion sector.
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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: 44.050
Low
52.00
Averages
67.71
High
80.00
Current: 44.050
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 Reports Strong Q4 Financial Results Driving Stock Gains
- Buyer Growth Improvement: Etsy saw a significant increase in active buyers in Q4, with reactivated buyers accelerating, indicating that the company's measures for customer retention and reactivation are yielding positive results, thereby enhancing its competitive position in the market.
- GMS Performance Recovery: Despite a roughly 5% decline in GMS on the website, the mobile app usage rose nearly 7%, reflecting a shift in user preferences, and Etsy has the opportunity to accelerate overall growth by optimizing the website experience, further enhancing revenue potential.
- Marketing Strategy Adjustment: With the elimination of the need to allocate marketing budgets between Depop and the core marketplace, Etsy can focus its investments on customer acquisition and technological innovation in the core market, which is expected to lay the groundwork for future growth, especially in 2026 and beyond.
- Technology Investment Outlook: Etsy plans to invest in technology and large language models (LLMs), which will not only enhance user experience but also potentially drive sales growth by improving data analytics capabilities, further solidifying its market position.
See More
ETSY STOCK RISES 9% FOLLOWING ANNOUNCEMENT OF DEPOP SALE TO EBAY FOR APPROXIMATELY $1.2 BILLION
Etsy's Stock Performance: Etsy shares have increased by 9% following a significant development in the fashion market.
Acquisition of Depop: The rise in stock value is attributed to Etsy's acquisition of Depop, a fashion marketplace, for nearly $1.2 billion.
See More
Etsy Sells Secondhand Clothing Business to eBay for $1.2 Billion
- Asset Sale Agreement: Etsy has agreed to sell its secondhand clothing marketplace, Depop, to eBay for $1.2 billion in cash, resulting in a more than 9% increase in Etsy's stock price, reflecting positive market sentiment towards this strategic move.
- Strong User Base: Depop is popular among younger consumers, boasting 7 million active buyers and 3 million sellers, with annual gross merchandise sales in the U.S. surging nearly 60% in 2025, reaching approximately $1 billion globally, indicating robust momentum in the secondhand fashion market.
- Focus on Core Business: By selling Depop, Etsy can concentrate on expanding its e-commerce marketplace for unique and creative goods, with the expected $1.2 billion cash inflow representing about a quarter of its current market capitalization, which will be used for growth initiatives and stock buybacks.
- Future Growth Potential: eBay's CEO stated that Depop will be better positioned for long-term growth under eBay's umbrella, leveraging eBay's scale and operational capabilities to further solidify its market position in the pre-loved fashion sector.
See More
US Stocks Close Lower Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.28%, the Dow Jones Industrial Average decreased by 0.54%, and the Nasdaq 100 index dropped by 0.41%, indicating market concerns over the outlook for artificial intelligence, particularly affecting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell to 206,000, a 5-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, reflecting uncertainties in economic recovery.
- Shifts in Fed Policy Expectations: Hawkish comments from Fed officials suggest a potential need for interest rate hikes to combat persistent inflation, leading to a more hawkish outlook for future rate paths, which further dampens market sentiment.
- Earnings Season Nearing Conclusion: With over three-quarters of S&P 500 companies reporting, 74% exceeded expectations, and Q4 earnings are projected to grow by 8.4%, demonstrating corporate resilience, yet the market remains cautious about future growth prospects.
See More
US Stock Market Under Pressure Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.26%, the Dow Jones Industrial Average by 0.28%, and the Nasdaq 100 by 0.34%, reflecting market concerns over the outlook for artificial intelligence, particularly with poor performances from chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell by 23,000 to 206,000, marking a 5-week low and indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations and suggesting challenges in economic recovery.
- Earnings Season Nearing End: Over 75% of S&P 500 companies have reported earnings, with 75% exceeding expectations, and Q4 earnings growth is projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, demonstrating resilience in corporate earnings.
- Geopolitical Risks Intensify: WTI crude oil prices rose over 2% to a three-week high due to military buildup in the Middle East, potentially increasing inflationary pressures, which could affect market sentiment and investor confidence.
See More
US Stocks Decline Amid AI Outlook Concerns
- Market Decline: The S&P 500 Index fell by 0.44%, the Dow Jones by 0.57%, and the Nasdaq 100 by 0.66%, reflecting market concerns over the outlook for artificial intelligence, particularly impacting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Weekly initial jobless claims dropped to 206,000, a five-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, suggesting economic pressures that could affect market confidence.
- Earnings Season Nearing End: Over 75% of S&P 500 companies have reported earnings, with 75% exceeding expectations, and Q4 earnings growth projected at 8.4%, providing some support for the market, although overall sentiment remains cautious.
- Geopolitical Risks Intensify: WTI crude oil prices rose over 1% to a three-week high due to U.S. military buildup in the Middle East, heightening inflation concerns and potentially increasing expectations for Fed rate hikes.
See More
Etsy Reports Strong Q4 Financial Results Driving Stock Gains
- Buyer Growth Improvement: Etsy saw a significant increase in active buyers in Q4, with reactivated buyers accelerating, indicating that the company's measures for customer retention and reactivation are yielding positive results, thereby enhancing its competitive position in the market.
- GMS Performance Recovery: Despite a roughly 5% decline in GMS on the website, the mobile app usage rose nearly 7%, reflecting a shift in user preferences, and Etsy has the opportunity to accelerate overall growth by optimizing the website experience, further enhancing revenue potential.
- Marketing Strategy Adjustment: With the elimination of the need to allocate marketing budgets between Depop and the core marketplace, Etsy can focus its investments on customer acquisition and technological innovation in the core market, which is expected to lay the groundwork for future growth, especially in 2026 and beyond.
- Technology Investment Outlook: Etsy plans to invest in technology and large language models (LLMs), which will not only enhance user experience but also potentially drive sales growth by improving data analytics capabilities, further solidifying its market position.
See More
ETSY STOCK RISES 9% FOLLOWING ANNOUNCEMENT OF DEPOP SALE TO EBAY FOR APPROXIMATELY $1.2 BILLION
Etsy's Stock Performance: Etsy shares have increased by 9% following a significant development in the fashion market.
Acquisition of Depop: The rise in stock value is attributed to Etsy's acquisition of Depop, a fashion marketplace, for nearly $1.2 billion.
See More
Etsy Sells Secondhand Clothing Business to eBay for $1.2 Billion
- Asset Sale Agreement: Etsy has agreed to sell its secondhand clothing marketplace, Depop, to eBay for $1.2 billion in cash, resulting in a more than 9% increase in Etsy's stock price, reflecting positive market sentiment towards this strategic move.
- Strong User Base: Depop is popular among younger consumers, boasting 7 million active buyers and 3 million sellers, with annual gross merchandise sales in the U.S. surging nearly 60% in 2025, reaching approximately $1 billion globally, indicating robust momentum in the secondhand fashion market.
- Focus on Core Business: By selling Depop, Etsy can concentrate on expanding its e-commerce marketplace for unique and creative goods, with the expected $1.2 billion cash inflow representing about a quarter of its current market capitalization, which will be used for growth initiatives and stock buybacks.
- Future Growth Potential: eBay's CEO stated that Depop will be better positioned for long-term growth under eBay's umbrella, leveraging eBay's scale and operational capabilities to further solidify its market position in the pre-loved fashion sector.
See More
US Stocks Close Lower Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.28%, the Dow Jones Industrial Average decreased by 0.54%, and the Nasdaq 100 index dropped by 0.41%, indicating market concerns over the outlook for artificial intelligence, particularly affecting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell to 206,000, a 5-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, reflecting uncertainties in economic recovery.
- Shifts in Fed Policy Expectations: Hawkish comments from Fed officials suggest a potential need for interest rate hikes to combat persistent inflation, leading to a more hawkish outlook for future rate paths, which further dampens market sentiment.
- Earnings Season Nearing Conclusion: With over three-quarters of S&P 500 companies reporting, 74% exceeded expectations, and Q4 earnings are projected to grow by 8.4%, demonstrating corporate resilience, yet the market remains cautious about future growth prospects.
See More
US Stock Market Under Pressure Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.26%, the Dow Jones Industrial Average by 0.28%, and the Nasdaq 100 by 0.34%, reflecting market concerns over the outlook for artificial intelligence, particularly with poor performances from chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell by 23,000 to 206,000, marking a 5-week low and indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations and suggesting challenges in economic recovery.
- Earnings Season Nearing End: Over 75% of S&P 500 companies have reported earnings, with 75% exceeding expectations, and Q4 earnings growth is projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, demonstrating resilience in corporate earnings.
- Geopolitical Risks Intensify: WTI crude oil prices rose over 2% to a three-week high due to military buildup in the Middle East, potentially increasing inflationary pressures, which could affect market sentiment and investor confidence.
See More
US Stocks Decline Amid AI Outlook Concerns
- Market Decline: The S&P 500 Index fell by 0.44%, the Dow Jones by 0.57%, and the Nasdaq 100 by 0.66%, reflecting market concerns over the outlook for artificial intelligence, particularly impacting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Weekly initial jobless claims dropped to 206,000, a five-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, suggesting economic pressures that could affect market confidence.
- Earnings Season Nearing End: Over 75% of S&P 500 companies have reported earnings, with 75% exceeding expectations, and Q4 earnings growth projected at 8.4%, providing some support for the market, although overall sentiment remains cautious.
- Geopolitical Risks Intensify: WTI crude oil prices rose over 1% to a three-week high due to U.S. military buildup in the Middle East, heightening inflation concerns and potentially increasing expectations for Fed rate hikes.
See More
