For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Etsy (ETSY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Etsy is one of 195 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #11 in the Zacks Sector Rank. The ...

An updated edition of the January 14, 2026 article.The popularity of gig economy has surged since the pandemic, transforming the way people work. It allows individuals to choose their working hours, workload and work environment. As both workers and businesses increasingly look for flexible and modern work arrangements, this emerging model has expanded rapidly.A major attraction of the growing gig economy is its ability to support a better work-life balance. For many individuals, the autonomy of being their ...

Core Insights - Etsy shares experienced a significant increase of 610% over a 24-month period leading to their peak in November 2021, but have since declined 81% from that record high due to softer growth in the e-commerce sector [1] Group 1: Growth Challenges - The Etsy marketplace reported $10.5 billion in gross merchandise sales (GMS) in 2025, reflecting a 4% year-over-year decline and a 14% decrease from the record $12.2 billion in 2021, indicating a downward trend since the pandemic [3] - Management anticipates only slight year-over-year growth in GMS for 2026, suggesting limited consumer interest in unique and handcrafted goods [4] Group 2: Capital Management - In 2021, Etsy acquired the secondhand fashion marketplace Depop for over $1.6 billion as part of a strategy to diversify its offerings [5] - Etsy has decided to sell Depop to eBay for $1.2 billion, resulting in a 25% loss in shareholder capital, following other divestitures of Reverb in 2025 and Elo7 in 2023, allowing the company to refocus on its core marketplace under new CEO Kruti Patel Goyal [6] Group 3: Valuation Considerations - Etsy has a network effect with 5.6 million active sellers and 86.5 million active buyers, creating a robust two-sided platform that is difficult for competitors to replicate [8] - The stock trades at a price-to-sales ratio of 2.3, which is 68% below its historical average, but this alone may not justify investment until consistent revenue and profit growth is observed [9]

Group 1 - Morgan Stanley's small and mid-cap Internet analyst Nathan Feather is hosting a presentation featuring Etsy's CEO Kruti Patel Goyal and CFO Lanny Baker [1] - The presentation includes important disclosures and encourages attendees to refer to the Morgan Stanley research disclosure website [2]

Summary of Etsy's 2026 Conference Call Company Overview - **Company**: Etsy (NasdaqGS:ETSY) - **Date**: March 03, 2026 - **Key Speakers**: Kruti Patel Goyal (CEO), Lanny Baker (CFO) Core Industry Insights - **Market Position**: Etsy has evolved significantly since its inception, growing from under $500 million in Gross Merchandise Sales (GMS) in 2011 to over $10.5 billion in GMS in 2025, with a workforce expanding from 200 to nearly 2,000 employees [7][8]. - **Market Opportunity**: Etsy currently captures less than 2% of a total addressable market (TAM) exceeding $650 billion, indicating substantial growth potential [66]. Key Strategic Initiatives 1. **Growth Reacceleration**: The company aims to enhance growth through four main priorities: - Improving visibility in the discovery phase of shopping. - Enhancing matching capabilities between buyers and inventory using machine learning (ML) and large language models (LLMs). - Recognizing and rewarding valuable customers. - Amplifying Etsy's unique value proposition centered on human connection and creativity [10][11][12]. 2. **Recent Performance**: Etsy has shown sequential improvement in GMS growth, moving from a negative 9% in Q1 to positive growth by Q4, driven by enhanced discovery and matching initiatives [13][14]. 3. **User Engagement**: Significant increases in user engagement have been noted, with clicks in the app's discovery feed up 19% year-over-year and 25% in owned marketing channels [14]. 4. **Buyer Growth**: Buyer growth improved by approximately 3% year-on-year in Q4, with a focus on personalized marketing strategies to enhance user retention and frequency of purchases [16][19]. 5. **Mobile App Strategy**: The mobile app is crucial for user retention, with users on the app showing a 40% higher lifetime value (LTV) compared to non-app users. Approximately half of Etsy's customers are not yet using the app, presenting an opportunity for growth [21]. Financial Insights - **Depop Sale**: The recent sale of Depop is expected to provide a cash infusion of about $1.2 billion, which will be allocated for general corporate purposes, including stock repurchases and managing the balance sheet [37][38]. - **EBITDA Margin Guidance**: Etsy anticipates maintaining an EBITDA margin of 28%-30% for the year, allowing for healthy investments in product experience and marketing [39]. Marketing and Advertising Strategy - **Marketing Evolution**: Etsy has shifted marketing focus towards social media and streaming platforms, moving away from traditional TV advertising. The company has seen improved return on investment (ROI) from these channels [62][63]. - **Agentic Commerce**: Etsy is an early mover in agentic commerce, with partnerships with OpenAI, Google, and Microsoft. Initial results show a 15x growth in traffic from these platforms, although it currently represents less than 1% of total traffic [44][45]. Challenges and Opportunities - **Search and Discovery**: Continuous improvement in search and discovery remains a priority, leveraging advancements in AI to better match buyer intent with inventory [30][31]. - **Human Connection**: Research indicates that buyers value the human aspect of Etsy's marketplace. Enhancing visibility of sellers and their stories is seen as a key opportunity for differentiation [54][55]. Underappreciated Aspects - **Cash Flow Production**: Etsy's ability to generate cash flow is considered underappreciated by investors, alongside the transformative potential of AI in improving internal processes and user experiences [69]. Conclusion Etsy is positioned for significant growth through strategic initiatives focused on enhancing user experience, leveraging technology, and capitalizing on its unique market position. The company is committed to improving engagement and retention while navigating the evolving landscape of e-commerce and agentic commerce.

Group 1: Walmart - Walmart beat earnings expectations with earnings of $0.74 per share and has a history of conservative guidance that it often exceeds [1] - The company has become a leader in omnichannel commerce, with a significant focus on the efficiency of its delivery platform [1] - The fastest-growing segment of Walmart's market share is households with annual incomes above $100,000, indicating potential economic pressures on higher-income consumers [1] - E-commerce penetration for Walmart reached an all-time high of 23%, contributing to operating income growth that outpaces revenue growth [2] Group 2: Booking Holdings - Booking Holdings shares fell by approximately 7.5% despite beating earnings, raising its dividend, and guiding for 15% revenue growth for the upcoming quarter [3] - The company announced a 25-for-1 stock split, which typically excites investors, yet the market reacted negatively [3] - Agency revenue decreased by 7% year-over-year, while merchant revenue increased by 25%, indicating a shift towards retaining more users on its platform [3] Group 3: Etsy and eBay - eBay announced the acquisition of Etsy's Depop business, with both companies seeing stock price increases following their earnings reports [4] - The acquisition values Depop at over $1 billion in gross merchandise sales, which is considered high compared to eBay and Etsy's own merchandise sales [5] - eBay's stock has risen due to capital returns to shareholders, but the acquisition may limit future returns [5] - Etsy benefits from a cash infusion from the sale, positioning it as a bigger winner in the deal [5] Group 4: Consumer Spending Insights - Consumer spending appears to be under pressure, with Walmart gaining market share across income brackets, indicating that consumers are cutting back [8] - Booking Holdings anticipates a slight decline in travel demand year-over-year, reflecting cautious consumer behavior [8] - The growth of platforms like eBay and Etsy suggests consumers are seeking cost-saving options in retail [8] Group 5: Lemonade - Lemonade reported a 31% year-over-year growth in in-force premiums and is approaching three million customers, marking its ninth consecutive quarter of accelerating growth [12] - The company is now profitable on an adjusted free cash flow basis, but concerns remain about high stock-based compensation and customer acquisition costs [12] - Despite challenges, Lemonade's innovative products, such as lower insurance rates for self-driving cars, show potential for future growth [12] Group 6: Klarna - Klarna's shares dropped 26% following a quarter that showed 38% revenue growth but also a 53% increase in transaction costs [17] - The company reported a loss of $0.79 per share for the full year, with rising reserves for credit losses raising concerns among investors [17] - Klarna is shifting focus towards banking products, which may introduce higher risks compared to its traditional Buy Now, Pay Later services [17][18]

Core Insights - Etsy, Inc. (NYSE:ETSY) is recognized as one of the 10 Best Stocks to Buy according to Elliott Investment Management [1] - Barclays upgraded Etsy's rating from Equal Weight to Overweight with a price target of $72, citing a recent divestiture of Depop and stabilization of its core business as a "tipping point" [2] - Truist raised its price target for Etsy from $80 to $83 while maintaining a Buy rating, highlighting steady growth towards sustainable positive Gross Merchandise Sales through improved AI search and marketing [2] Company Developments - On February 25, 2026, Etsy's Chief Product & Technology Officer sold 2,500 shares valued at approximately $129,800 [3] - As of February 26, 2026, 32% of 31 analysts following Etsy have given the stock a Buy rating, with a 1-year median price target of $60 [3] Company Background - Founded in 2005 and headquartered in New York, Etsy is a global e-commerce marketplace focused on handmade, vintage, and creative goods [4]

Core Insights - Shopify (SHOP) and Etsy (ETSY) are key players in the growing e-commerce sector, with Shopify focusing on a comprehensive commerce stack and Etsy on a curated marketplace for unique goods [1][2] E-commerce Market Overview - The e-commerce market is projected to grow from $36.21 trillion in 2026 to $77.58 trillion by 2031, reflecting a 16.46% CAGR driven by smartphone adoption, digital payment infrastructure, and AI integration [2] Shopify Analysis - Shopify operates as a commerce operating system, providing tools for storefront creation, payments, logistics, and AI-driven merchant tools, generating revenue from subscription fees and transaction income [4] - In 2025, Shopify's revenues increased by 30% to $11.6 billion, with GMV rising 29% to $378 billion, and international revenues grew by 36% [5] - Shopify Payments processed 68% of total GMV, enhancing ecosystem stickiness [5] - Competition is intensifying with large tech platforms entering the commerce space, and while enterprise merchant onboarding is accelerating, long implementation cycles may pressure margins [6] - The Zacks Consensus Estimate for SHOP's 2026 EPS is $1.74, indicating a year-over-year growth of 48.72% [7] Etsy Analysis - Etsy operates a two-sided marketplace for handmade, vintage, and personalized goods, generating revenue through listing fees, transaction fees, and advertising [8] - The company is focusing on a strategic reset with priorities including enhancing shopping journey visibility, improving machine learning matching, and deepening buyer loyalty [9] - The mobile app is central to Etsy's strategy, driving engagement and higher lifetime value compared to desktop users [10] - Etsy's marketplace GMS improved by 200 basis points year-over-year, and the divestiture of Depop for $1.2 billion allows for a sharper focus on the core marketplace [11] - The Zacks Consensus Estimate for ETSY's 2026 EPS is $3.35, reflecting a year-over-year growth of 141.01% [12] Stock Performance and Valuation - Over the past six months, SHOP shares declined by 14.5%, while ETSY shares fell by 6.4%, influenced by weak macro conditions [17] - SHOP shares are currently overvalued with a Value Score of F, while ETSY shares are considered cheap with a Value Score of B [18] - In terms of forward Price/Sales, SHOP trades at 10.44X compared to ETSY's 1.73X, indicating a significant valuation gap [19] - Etsy's lower multiple reflects an active recovery and improving profitability, while Shopify's elevated multiple incorporates high execution expectations [20] Conclusion - Etsy's marketplace recovery, focused capital allocation post-Depop divestiture, and unique inventory position it as a more attractive investment compared to Shopify at current levels [22] - Etsy holds a Zacks Rank 1 (Strong Buy), while Shopify has a Zacks Rank 3 (Hold), indicating a stronger investment case for ETSY [23]

Investment Dynamics - Amazon announced a $12 billion investment to build its first data center campus in Louisiana, in collaboration with Stack Infrastructure, which includes a $400 million investment in local water infrastructure upgrades. The project is expected to create 540 direct full-time jobs and 1,710 related jobs [3] - eBay plans to acquire Etsy's second-hand fashion social platform Depop for approximately $1.2 billion in cash, with the deal expected to close in Q2 2026, pending regulatory approval. This acquisition aims to enhance eBay's C2C offerings and allow Etsy to focus on its core handmade market [6] - Lululemon will open its 100th store in the EMEA region in Warsaw, Poland, on March 13, marking its official entry into the Polish market. The brand plans to enter six new markets in 2026, the highest number in a single year in its history [9] - PepsiCo's Alvalle brand launched a new line of ready-to-eat vegetable soups made from 100% Spanish natural ingredients, with plans to expand into Portugal and other Western European markets [12][13] - Moncler Group reported a 1% year-over-year revenue increase to €3.13 billion for 2025, with a strong fourth quarter growth of 7%. The brand's performance reflects a clear strategy and resilience in a volatile environment [16] - Brunello Cucinelli's revenue grew by 11.5% in 2025, with a net profit of €142 million, slightly above expectations. The brand's success is attributed to the ongoing trend of "quiet luxury" and strong performance in Asia [19] - OTB Group's net sales decreased by 5.9% to €1.6 billion in 2025, with a notable performance from Maison Margiela, which saw an 8.4% sales increase. The group demonstrated resilience despite global uncertainties [22] Personnel Dynamics - Valentino appointed Liran Peterzil as the new Chief Marketing Officer, effective March 2, to oversee global brand strategy and marketing efforts [24] - Saint Laurent appointed Johnny Coca as the creative director for accessories, aiming to enhance the brand's accessory offerings and overall profitability [27] - J.Crew's menswear creative director Brendon Babenzien is leaving to focus on his own brand, Noah, which may create a strategic gap in J.Crew's menswear direction [30]

Etsy to Participate in Upcoming Investor Conference [Accessibility Statement] Skip NavigationBROOKLYN, N.Y., Feb. 25, 2026 /PRNewswire/ -- Etsy, Inc. (NYSE: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced that its executives will participate in the Morgan Stanley Technology, Media & Telecom Conference in San Francisco. There will be a webcasted fireside chat on March 3, 2026 at 4:50 p.m. PST, which inve ...