This audio is auto-generated. Please let us know if you have feedback Dive Brief:Depop has launched Outfits, an in-app feature that allows users to style outfits using inventory from its marketplace, the company announced on Wednesday. Similar to a mood board, the feature allows users to pull items from any listing, place them in a collage and then purchase products. Users can save their looks for later and share them on Instagram or Pinterest. Users can adjust the size of their selected items, customize t ...

Core Insights - The article revisits Etsy, Inc. (NASDAQ: ETSY) after a significant period, noting its previous performance during the COVID-19 pandemic and the surge in online shopping [1]. Group 1 - The analysis reflects on Etsy's stock performance post-COVID, indicating a decline from its previous highs [1].

Core Viewpoint - The recent retail sales data indicates strong growth, primarily driven by e-commerce, suggesting that the average American consumer may be in better financial health than previously thought [1][2]. E-Commerce Industry Insights - E-commerce is identified as the main driver of retail sales growth, with significant investment opportunities in leading companies such as Amazon, Etsy, and Shopify [2]. - Amazon is highlighted as the dominant player in online retail, trading at 96% of its 52-week high and achieving a quarterly performance of 9% [2][3]. - Etsy is noted for its potential for massive earnings growth, with projected EPS growth from $0.25 to $0.97 by Q4 2025, representing a 288% increase, while trading at a lower valuation compared to Amazon [5][6]. - Shopify, despite its high valuation with a forward P/E of 132x, is recognized for its essential role in global e-commerce, justifying its premium price [8][9]. Company-Specific Highlights - Amazon's market cap of $2.4 trillion provides stability, making it a safer investment choice, although it limits explosive growth potential [3]. - Analysts have a positive outlook on Amazon, with a price target of $270, indicating a 17% upside from current levels [4]. - Etsy's stock is considered underpriced relative to its growth potential, attracting significant investment interest, including a $266 million stake from Holocene Advisors [7]. - Shopify's high valuation reflects its market position and growth potential, with a price target of $195 from Citigroup, suggesting a 32% upside [9].

Group 1 - Etsy's Relative Strength (RS) Rating improved from 67 to 72, indicating a better technical performance in the stock market [1] - MercadoLibre also received a Relative Strength Rating upgrade, suggesting improving technical performance [1] - Palantir leads nine new additions to IBD's Best Stock Lists, highlighting its strong market position [3] Group 2 - Coupang's stock saw a Relative Strength Rating increase to 86, reflecting positive market sentiment [3] - Chewy's stock also experienced a rise in its Relative Strength Rating, indicating improved performance [3] - Micron and Boeing are among five stocks that are nearing buy points, suggesting potential investment opportunities [3]

Core Insights - Pinterest, Inc. (PINS) and Etsy, Inc. (ETSY) are key players in the social e-commerce sector, focusing on discovery-driven shopping experiences that blend social inspiration with e-commerce to capture consumer spending trends online [1][2] - Pinterest offers a platform for users to save and organize visual recommendations, generating revenue through ads targeted at millennials and Gen Z [1] - Etsy operates a two-sided marketplace that allows merchants to manage products and customer relationships, supported by a strong technology infrastructure [2] Pinterest's Competitive Position - Pinterest is establishing a unique value proposition for advertisers, improving its advertising platform to attract consumer discretionary brands [4] - The company is enhancing operational rigor and utilizing AI to improve relevancy and personalization, which is expected to yield long-term benefits [5] - Pinterest projects a sales growth of 15.8% and EPS growth of 33.3% for 2025, indicating strong future performance [8][11] Etsy's Competitive Position - Etsy is enhancing customer experience through personalized shopping experiences, utilizing AI and machine learning for better engagement [7] - The company expects a modest sales growth of 1.3% for 2025, but a significant decline in EPS by 43.4% [8][13] - Etsy's subsidiary, Depop, has shown strong growth, particularly in the U.S. market, contributing positively to overall performance [9] Market Dynamics - Pinterest's stock has gained 23.5% over the past year, while Etsy's has only increased by 6.8% [14] - From a valuation perspective, Pinterest trades at a higher price/sales ratio of 5.3 compared to Etsy's 1.98, indicating a premium valuation for Pinterest [15] - Both companies carry a Zacks Rank 3 (Hold), but Pinterest is viewed as a better investment option due to its superior growth expectations and operating metrics [16][17]

Core Insights - Etsy has introduced AI-powered tools for sellers, including title suggestions and writing assistance, aimed at enhancing communication with buyers and allowing sellers to focus on their creative processes [1][2] - The company is launching several new features ahead of the holiday shopping season, including a Top Tasks feature in Shop Manager and a Marketplace Insights tool to help sellers understand buyer trends [2][3] - Etsy is also updating its Community Hub with AI-powered search, new educational resources, and a dashboard for policy violations, while increasing coverage under Etsy Purchase Protection during the holiday season [4] Financial Performance - In July, Etsy reported a sales increase of 3.8% for the most recent quarter and 2.3% for the first half of the year [5] - The company's performance is attributed to a strategic shift made last year to enhance the marketplace's browsability and intuitiveness [6] Strategic Direction - Etsy is focusing on a hybrid approach to AI that integrates human oversight to improve the shopping experience [6] - The company aims to address the unique challenge of matching over 130 million creative items with the right buyers at the right time [7]

Core Insights - The company has experienced significant growth during the COVID-19 pandemic, with gross merchandise sales (GMS) more than doubling from approximately $5 billion in 2019 to $11 billion last year [2]. Group 1: Business Journey - The company faced headwinds in the business over the past couple of years but has now established strategic priorities to reposition itself [1]. - The company successfully retained the gains made during the pandemic, even as consumers returned to a market with more choices [2]. Group 2: Strategic Focus - The CEO highlighted the importance of understanding customer needs, noting that many customers turned to the company during the pandemic when they could not find desired products elsewhere [2]. - The company is focused on executing its strategic priorities to ensure continued growth and adaptation in the medium to long term [1].

Core Insights - The company has experienced significant growth during the COVID-19 pandemic, with gross merchandise sales (GMS) increasing from approximately $5 billion in 2019 to $11 billion in the last year, more than doubling its business [2]. Group 1: Business Performance - The company successfully retained the gains made during the pandemic, even as consumers returned to a market with more choices [2]. - The strategic priorities set by the company aim to reposition the business for future growth [1]. Group 2: Market Context - The pandemic created a unique environment where many consumers turned to the company for specific products they could not find elsewhere, leading to a surge in demand [2].

Summary of Etsy Conference Call Company Overview - **Company**: Etsy (NasdaqGS:ETSY) - **Date**: September 09, 2025 - **Key Speakers**: Josh Silverman (CEO), Lanny Baker (CFO) Core Industry Insights - **E-commerce Landscape**: Etsy has experienced significant growth during and post-COVID, with Gross Merchandise Sales (GMS) increasing from approximately $5 billion in 2019 to $11 billion in the last year, and active buyers growing from 45 million to 88 million [4][5] - **Market Positioning**: Etsy aims to transition from being a last resort for unique items to a starting point for various shopping journeys, such as weddings and home decor [5] Strategic Priorities 1. **Consumer Engagement**: - Focus on meeting consumers during their discovery phase rather than just when they know what they want [8] - Shift marketing spend from traditional channels to platforms like TikTok and YouTube, reducing linear cable marketing from one-third to low single digits [9][10] 2. **Personalization and AI Integration**: - Utilize generative AI to enhance product recommendations and create personalized shopping experiences [11][22] - Develop a loyalty program targeting best customers, with a beta version already showing positive engagement [12][13] 3. **App Development**: - The Etsy app now accounts for approximately 45% of GMS, with ongoing improvements to enhance user experience and engagement [15][16] - The app is designed to be a source of entertainment and discovery, encouraging users to explore items they may not have initially considered [18] 4. **Cross-Border Resilience**: - Etsy's marketplace has shown resilience during global trade disruptions, with a diverse inventory that allows for flexibility in sourcing [34][35] - The company is well-prepared for tariff changes, with a significant portion of GMS coming from U.S. buyers [35][36] Financial Performance - **Margins and Profitability**: - Etsy maintains high EBITDA margins, close to 30%, despite a challenging post-COVID environment [40][41] - The company generated $635 million in free cash flow over the last 12 months, with a focus on balancing growth and margin [42][43] Future Outlook - **Growth Potential**: - Etsy believes it has significant room for growth, with aspirations to expand beyond its current market size [51][52] - The integration of AI is expected to unlock new opportunities for customer engagement and product discovery [54] Key Takeaways - Etsy is positioned to leverage its unique marketplace and technological advancements to enhance customer experiences and drive growth - The company is committed to maintaining strong financial health while investing in strategic initiatives that align with evolving consumer behaviors and preferences - The leadership expresses confidence in Etsy's ability to differentiate itself in a competitive e-commerce landscape, emphasizing its unique brand identity and customer loyalty [54][55]

Group 1 - Etsy has expanded the role of Rafe Colburn from chief technology officer to chief product and technology officer, allowing him to enhance the customer shopping experience and drive growth through technology [3][7] - Colburn has over a decade of experience at Etsy and previously held a similar role at Depop, where he was responsible for user experience and building a high-performing product organization [4][7] - The company is heavily investing in artificial intelligence, having launched a new browseable search experience that combines AI and human intelligence to curate collections for shoppers [6][7] Group 2 - The restructuring follows the departure of Nick Daniel, the former chief product officer, who will advise the company until October before pursuing other opportunities [5][7] - Colburn's new role includes managing engineering and product operations for the Etsy marketplace, reporting directly to Kruti Patel Goyal, the president and chief growth officer [7]