BROOKLYN, N.Y., March 27, 2025 /PRNewswire/ -- Etsy, Inc. (NASDAQ: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced the appointment of Rafe Colburn as Chief Technology Officer (CTO), effective May 5, 2025. Colburn brings a wealth of technology leadership experience to the role. He currently serves as Chief Technology & Product Officer at Depop, where he has successfully scaled the technology team to supp ...

Core Insights - Etsy, Inc. (NASDAQ: ETSY) has recently attracted attention as its share price has declined, leading to a closer examination of the company and its potential as a strong buy opportunity [1] Company Analysis - The author has not previously investigated Etsy closely but has now placed it on a watch list due to its declining stock price [1] - The author believes they have identified a strong buy opportunity in Etsy, indicating a positive outlook for the company's future performance [1] Analyst Background - The author has over 25 years of experience in the financial and investment industry, including roles in treasury management, financial performance analytics, and trading [1] - The author is a CFA Charterholder and an active member of the CFA Institute, suggesting a strong foundation in financial analysis [1]

Things are going from bad to worse for the e-commerce specialist Etsy (ETSY 2.81%). The company has faced significant headwinds in the past three years, and its recent fourth-quarter earnings results just gave the bears even more ammunition. Etsy's shares fell on the heels of a disappointing quarterly update. Is there any hope that Etsy can turn things around? If it can, now might be a great time to initiate a position in the stock, considering Etsy is barely above its 52-week low. Is this an opportunity in ...

The three major indexes have declined in recent weeks. The Nasdaq Composite (^IXIC -1.96%) even entered correction territory as investors worried about the impact of President Donald Trump's tariffs on the economy and corporate earnings.The initial tariffs apply to imports from China, Canada, and Mexico -- the U.S.' top trading partners -- and the Trump Administration says it put them in place as a response to a flow of lethal drugs into the U.S. In recent days, though, the president also announced tariffs ...

Core Viewpoint - Etsy's stock has fallen significantly after reporting its 2024 earnings, with a decline of around 10% recently and over 80% from its peak in late 2021, indicating potential ongoing troubles for the company [1] Company Overview - Etsy operates marketplaces connecting buyers and sellers, with its main platform accounting for approximately 86% of its revenue in 2024 [2] - The company also owns Reverb and Depop, which together contribute about 24% to its revenue, indicating that the Etsy platform is the most critical business unit [3] Business Performance - Following a surge in investor interest during the pandemic, Etsy's merchandise sales value fell by 4.4% in 2024, continuing a trend of declines from previous years (1.2% in 2023 and 1.3% in 2022), suggesting a shrinking business [5] - In contrast, merchandise sales had more than doubled in 2020 and increased by 31% in 2021, driven by pandemic-related demand, but the market appears to be saturated now [6] Buyer Engagement - The number of active buyers decreased by 2.6% year-over-year in Q4 2024, with average purchases down by 3.5%, and habitual buyers fell by 9.5%, indicating potential buyer fatigue [7] Earnings Analysis - Despite weakening fundamentals, Etsy's earnings rose due to the company buying back 12.2 million shares in 2024, which increased earnings per share by approximately 10%, potentially masking deeper business issues [8] Valuation Considerations - With Etsy's stock losing nearly all pandemic-era gains, its current price-to-earnings ratio is around 19.5, compared to eBay's 16.5, suggesting that Etsy's valuation may continue to decline [9]

Etsy, Inc. (NASDAQ:ETSY) Morgan Stanley Technology, Media & Telecom Conference March 5, 2025 7:05 PM ET Company Participants Josh Silverman - Chief Executive Officer Lanny Baker - Chief Financial Officer Conference Call Participants Nathan Feather - Morgan Stanley Nathan Feather Good afternoon, everyone. Thanks so much for joining us. I'm Nathan Feather, Morgan Stanley small and mid-cap internet analyst. Pleased to be joined today by Josh Silverman, Etsy CEO, and Lanny Baker, Etsy's new CFO. Thanks so much ...

Core Viewpoint - Etsy Inc. has seen its stock decline approximately 7% since the earnings report on February 19, primarily due to concerns over slowing growth despite year-over-year revenue and earnings increases, and a low forward price-to-earnings (P/E) ratio of around 8x [1] Financial Performance - Etsy's quarterly revenue has surpassed $850 million, indicating its growth beyond a niche market [4] - The company's revenue growth over the last 12 months is only 2.18%, significantly lower than its compound annual growth rate (CAGR) of 27.9% [4] - Gross merchandise sales (GMS) have decreased by 4.4%, marking the lowest quarterly revenue growth since the company went public in 2014 [7] Market Trends - The number of active sellers on Etsy surged by approximately 75% from 2020 to 2021, reaching 7.5 million, but has since remained flat and decreased by 8.5% year-over-year [6] - There have been four consecutive years of declining GMS, suggesting a potential decline in the platform's value proposition [8] Investment Outlook - Analysts have a consensus Hold rating for Etsy, with a 12-month price target of $58.78, indicating a potential upside of 10.64% [9] - The stock is viewed as more suitable for short-term trading rather than a long-term investment, with the price consolidating and potential for a move higher if trading volume increases [10] - Despite the potential for long-term growth in the e-commerce space, Etsy is struggling to shed its image as a niche site [9]

Core Viewpoint - Etsy has experienced a significant decline in stock value, trading 83% below its peak in late 2021, raising questions about its future growth potential [1] Group 1: Financial Performance - Gross merchandise sales (GMS) decreased by 4.4% year over year to $12.6 billion in 2024, which is 7% lower than the record of $13.5 billion in 2021, marking the third consecutive year of decline [3] - As of December 31, 2024, Etsy had 95.5 million active buyers and 8.1 million active sellers, both figures lower than the previous year [4] - The company generated $709 million in free cash flow in 2024, with an average operating margin of 18.1% over the past five years [7] Group 2: Market Environment - The e-commerce industry is growing, with over 80% of retail spending in the U.S. still occurring in physical stores, and online shopping expected to rise at nearly 19% annualized pace globally until 2030 [6] - Etsy benefits from network effects due to its two-sided platform, increasing its value as more buyers and sellers join [5] Group 3: Investment Sentiment - The stock is currently trading at a low forward P/E ratio of 8.9, less than half that of the overall S&P 500, indicating a pessimistic market outlook [8] - Improved fundamental performance and investor sentiment could lead to significant share price increases, but confidence in this outcome is low given current financial trends [9]

Group 1: Etsy - Etsy has experienced a significant decline in stock price, down 59% over the past three years, attributed to economic challenges and increased competition [2][3] - The company's financial performance has been poor, with revenue growth significantly down and earnings unimpressive [3] - Despite the sell-off, Etsy's shares are trading at a forward price-to-earnings ratio of 10.5, which is considerably lower than the consumer discretionary industry average of 28.5, indicating a potentially attractive valuation [5] - Etsy benefits from a network effect, where the presence of more merchants attracts more buyers, helping maintain its competitive position in the vintage and handmade goods market [6] - The company has only captured 2% of its addressable market, valued at over $500 billion, suggesting substantial growth opportunities in the e-commerce sector [7] Group 2: Exact Sciences - Exact Sciences specializes in cancer diagnostic tests, with its leading product, Cologuard, being a noninvasive test for colorectal cancer, which has a large untapped market in the U.S. with about 60 million eligible patients unscreened [8] - The company has faced challenges due to increased competition, particularly from Guardant Health's Shield blood test, and remains unprofitable [9][10] - Recent developments are favorable for Exact Sciences, including the clearance for a next-generation Cologuard that has a higher sensitivity rate of 93.9% compared to Shield's 83.1%, which may help maintain market share [11] - The new Cologuard is also 5% cheaper to manufacture, which could reduce expenses and improve profitability [12] - Exact Sciences reported total revenue of $2.76 billion for 2024, a 10% increase from the previous year, and plans to launch two additional cancer tests, which may enhance revenue growth [12][13]

Core Viewpoint - Etsy's stock has significantly declined, trading 83% below its peak in November 2021, despite a forward P/E ratio of 8.9 indicating potential value opportunity [1] Company Performance - Revenue increased by 2.2% in 2024, but gross merchandise sales (GMS) fell by 4.4%, marking a decline for three consecutive years since the peak in 2021 [4][5] - Active sellers and buyers decreased by 10% and 1.1%, respectively, from Q4 2022 to Q4 2023, indicating a worsening value proposition [7] Market Context - The global e-commerce spending is projected to grow by 19% annually through the end of the decade, which should benefit companies like Etsy, yet Etsy has not capitalized on this trend [5] - The retail and e-commerce sectors are highly competitive, with Etsy's unique offerings of vintage and handcrafted goods helping it stand out [9][10] Consumer Behavior - Etsy's differentiation may hinder repeat purchasing, as consumers tend to visit for special occasions rather than regular shopping [11] - The number of habitual buyers, defined as those shopping on six or more days and spending at least $200 annually, has decreased from 8.1 million to 6.4 million over three years [12] Leadership Insight - Etsy's CEO attributes the decline in performance to "pressure on consumer discretionary product spending," particularly affecting categories like furniture, apparel, and jewelry [6]