Core Viewpoint - Etsy shares surged over 17% following the announcement of eBay's acquisition of Depop for approximately $1.2 billion in cash, marking a significant financial event for the company [1]. Group 1: Company Actions - eBay is set to acquire Depop, a secondhand clothing reseller, for about $1.2 billion in cash [1]. - This acquisition comes nearly five years after Etsy purchased Depop for around $1.62 billion, indicating a strategic shift in the marketplace [1]. Group 2: Market Impact - The announcement led to a notable increase in Etsy's stock price, with shares rising more than 17% [1]. - The acquisition is expected to enhance eBay's presence among younger consumers who are attracted to the secondhand market [1].

Exhibit 2.1 Execution Version SALE AND PURCHASE AGREEMENT BY AND BETWEEN eBay Inc. and Etsy, Inc. Dated as of February 15, 2026 ARTICLE I | DEFINITIONS; | | INTERPRETATION 27 | | --- | --- | --- | | Section | 1.1 | Definitions 27 | | Section | 1.2 | Interpretation 46 | ARTICLE II | THE | SALE AND | PURCHASE; | CLOSING; | PURCHASE PRICE AND PAYMENT 47 | | --- | --- | --- | --- | --- | | | Section | 2.1 The | | Closing 47 | | | Section | 2.2 The | Sale and | Purchase 48 | | | Section | 2.3 Purchase | | Price ...

more information about the company and its global portfolio of online brands, visit [www.ebayinc.com].About EtsyEtsy, Inc. operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world. These marketplaces share a mission to "Keep Commerce Human," and Etsy's committed to using the power of business and technology to strengthen communities and empower people. Its primary marketplace, [Etsy.com], is the global destination for unique and creative goo ...

Core Viewpoint - Etsy, Inc. (NYSE:ETSY) is experiencing price target reductions from various analysts, reflecting broader market conditions in the e-commerce sector, yet the outlook remains cautiously optimistic as the company is expected to return to growth [2][3][4]. Group 1: Analyst Ratings and Price Targets - BofA has lowered its price target on Etsy to $63 from $73 while maintaining a Neutral rating ahead of the earnings report scheduled for February 19, indicating a response to multiple compressions in the e-commerce space [2]. - Stifel analyst Mark Kelley reduced his price target on Etsy to $62 from $65, keeping a Hold rating, citing healthy fourth-quarter data for the e-commerce group but noting potential pricing pressure from Amazon in 2026 [3]. - Cantor Fitzgerald analyst Deepak Mathivanan lowered the price target to $55 from $64 while maintaining a Neutral rating, acknowledging macro concerns but suggesting an improving outlook for Global Internet stocks as AI enters a "Synergy" phase [4]. Group 2: Company Overview - Etsy, Inc. operates two-sided online marketplaces, including Etsy, Reverb, and Depop, connecting buyers and sellers globally across various consumer categories [5].

Company Overview - Etsy, Inc. operates two-sided online marketplaces connecting millions of buyers and sellers globally, with a mission to "Keep Commerce Human" [4][5] - The primary marketplace, Etsy.com, is known for unique and creative goods, catering to both buyers seeking inspiration and sellers needing business tools [4] Financial Results Announcement - Etsy plans to release its fourth quarter and full year 2025 financial results before the market opens on February 19, 2026 [1] - A video webcast conference call will be held at 8:30 a.m. Eastern Time on the same day to discuss the results, allowing publishing research analysts to ask questions [2] Additional Information - A replay of the video webcast will be available starting at 12:00 p.m. Eastern Time on the same day, accessible for at least three months [3] - The company utilizes its Investor Relations website and Etsy News Blog for disclosing material non-public information and compliance with disclosure obligations [6]

Company Overview - Etsy, Inc. operates a unique e-commerce marketplace focused on handmade, vintage, and distinctive goods, covering categories such as jewelry, apparel, home décor, furniture, toys, and art, serving a global community of creators and buyers [4] Financial Performance - The company has achieved an average revenue growth of over 27% over the past five years, indicating strong performance in the e-commerce sector [4] Leadership Transition - A significant leadership change is underway, with founder Josh Silverman transitioning to the role of Executive Chair and Kruti Patel Goyal taking over as CEO effective January 1, supported by the Board of Directors to ensure continuity and strategic focus [3] Market Outlook - Stifel analyst Mark Kelley has adjusted the price target for Etsy to $62 from $65 while maintaining a Hold rating, citing a healthy overall performance in the e-commerce sector for the fourth quarter, but also highlighting potential consumer pricing pressures in 2026 based on Amazon's recent comments [1]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] Investment Opportunity - A specific company is highlighted as a potential investment opportunity, possessing critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI data centers [3][7] - This company is not a chipmaker or cloud platform but is positioned to benefit significantly from the anticipated surge in electricity demand driven by AI technologies [3][6] Energy Demand and Infrastructure - AI technologies, particularly large language models like ChatGPT, are extremely energy-intensive, with data centers consuming as much energy as small cities [2] - The company in focus is involved in nuclear energy infrastructure, which is crucial for America's future power strategy, and is capable of executing large-scale engineering, procurement, and construction projects across various energy sectors [7][8] Financial Position - The company is noted for being completely debt-free and holding a substantial cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened with debt [8][10] - It is trading at a low valuation of less than 7 times earnings, making it an attractive option for investors seeking exposure to both AI and energy sectors [10] Market Trends - The company is poised to benefit from the onshoring trend driven by tariffs, as well as the surge in U.S. LNG exports under the current administration's energy policies [5][14] - There is a growing recognition on Wall Street of this company's potential, as it quietly capitalizes on multiple favorable market trends without the inflated valuations seen in other sectors [8][9] Future Outlook - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the importance of investing in AI-related opportunities [12] - The overall narrative suggests that investing in AI and the associated energy infrastructure is not just about financial returns but also about participating in a transformative technological revolution [15][19]

Core Insights - Hussman Strategic Advisors, Inc. increased its position in Etsy by 42,000 shares during Q4 2025, with an estimated trade value of $2.56 million, bringing the total value of its Etsy holdings to $4.66 million, an increase of $1.87 million from the previous period [1][2] Company Overview - Etsy, Inc. is a leading global e-commerce platform specializing in unique and creative goods, connecting millions of buyers and sellers across multiple niche marketplaces [5] - The company operates online marketplaces including Etsy.com and Depop, generating revenue through transaction fees, payment processing, advertising services, and value-added seller tools [8] - As of January 30, 2026, Etsy's market capitalization was $5.25 billion, with a revenue of $2.85 billion and a net income of $182.15 million [4] Recent Performance - As of January 30, 2026, Etsy shares were priced at $52.96, reflecting a decline of 5.53% over the past year, underperforming the S&P 500 by 18 percentage points [3] - The core Etsy marketplace business has shown some growth, delivering 300 basis points of gross merchandise sales (GMS) growth quarter over quarter, with overall revenue increasing by 6% due to the divestiture of Reverb and success with onsite ads [9]

Core Viewpoint - The rise of online shopping is a significant secular trend, prompting investor interest in the e-commerce sector, particularly in companies like Etsy, which is currently undervalued compared to its historical performance [1][2]. Industry Overview - Advancements in internet speeds and smartphone adoption have facilitated the growth of e-commerce, which is expected to continue as physical retail still dominates consumer spending in the U.S. [2]. - The e-commerce sector is characterized by a durable trend, making it an attractive area for investment [1]. Company Analysis: Etsy - Etsy is currently trading at a price-to-sales ratio of 2.3, marking a historically attractive valuation point for the company [3]. - The company has carved out a niche in the market for unique, handcrafted, and vintage goods, differentiating itself from larger competitors like Amazon [4]. - A 2023 survey indicated that 83% of Etsy buyers believe the marketplace offers items that cannot be found elsewhere, highlighting its unique value proposition [4]. Business Model - Etsy operates an asset-light business model, connecting 86.6 million active buyers with 5.5 million active sellers without holding inventory or managing logistics [5]. - This model creates a network effect, enhancing the platform's value as more users join, benefiting both buyers and sellers [5]. Financial Performance - Etsy's marketplace processed $2.4 billion in gross merchandise sales in Q3 2025, reflecting an 11% decline compared to the same period in 2021, attributed to reduced consumer spending on discretionary items [7]. - The company has faced increased expenses in product development and marketing, which may pose challenges for future growth [7]. - Despite its low stock price, there is a recommendation for investors to wait for clear signs of fundamental improvements before making purchases [7].

Core Insights - The podcast discusses a 25-point risk rating system developed by David Gardner to assess investment risks in stocks, moving beyond vague terms like "medium risk" to a more quantifiable approach [1][4][5]. Group 1: Risk Assessment Framework - The risk rating system consists of 25 yes or no questions, where each "no" adds a point, indicating higher risk with a higher score [5]. - The framework aims to provide clarity in risk assessment for both individual stocks and entire portfolios [5]. - The system challenges the notion that high risk equates to high reward, suggesting that lower risk stocks can sometimes yield greater returns [5]. Group 2: Company Analysis - Etsy - Etsy reported a net income of $182 million over the past 12 months and $75 million in the last quarter, indicating profitability [11]. - The company generated free cash flow of approximately $205 million in the last quarter and $635 million over the past 12 months [15]. - Etsy has over 93 million buyers and 8.5 million sellers, ensuring no single customer accounts for more than 20% of revenue [21][22]. - The company has seen a decline in active buyers and gross merchandise sales, with a net promoter score of -7, indicating questionable customer sentiment [25][26]. - Etsy's market cap is approximately $6 billion, which is below the $10 billion threshold considered less risky [56]. Group 3: Company Analysis - Duolingo - Duolingo achieved a net income of approximately $386 million over the past 12 months and has been profitable since 2023 [12]. - The company reported free cash flow of about $350 million, growing by 20% year over year [16]. - Duolingo has over 50% brand awareness in the U.S. language learning market and benefits from strong word-of-mouth marketing [20]. - The company has a market cap of around $7 billion, also below the $10 billion threshold [58]. - Duolingo's annual revenue growth has been at least 40% over the past three years, with a compound annual growth rate of 42% [30]. Group 4: Competitive Landscape - Etsy faces significant competition from larger companies like Amazon and Shopify, which have greater financial resources [44]. - Duolingo is considered a market leader with competitors like Babel and Rosetta Stone but surpasses them in user engagement and brand awareness [45]. - There are no major disruptive upstarts challenging Etsy's business model, but there are smaller alternatives [48]. - Duolingo faces potential disruption from AI technologies, particularly in language learning, but currently has no direct competition [49][50]. Group 5: Financial Metrics - Etsy's return on equity is negative due to large-scale buybacks, indicating potential management issues [41]. - Duolingo reported a return on equity of almost 40%, influenced by a one-time tax benefit, but generally shows an upward trend [42].