Can OpenAI Save Etsy?

Core Insights - Etsy was once a leading e-commerce stock with significant sales growth during the pandemic, but its outlook has changed dramatically by 2025 as it has divested from its House of Brands strategy and faced stagnant revenue growth [1][2] Group 1: Financial Performance - In Q2, Etsy's gross merchandise sales decreased by 4.8% to $2.8 billion, while revenue increased by 3.8% to $672.7 million, primarily due to on-site ads and higher fees [3] - Key metrics such as adjusted EBITDA, active sellers, and active buyers have all declined year over year [3] Group 2: Strategic Developments - Etsy has recently partnered with OpenAI to introduce a new tool called Instant Checkout, allowing U.S. ChatGPT users to purchase directly from Etsy sellers [5][6] - This partnership has led to a notable increase in Etsy's stock price, which rose by 15.8% following the announcement [6] Group 3: Market Challenges - Etsy has historically struggled with product discovery, relying heavily on direct traffic to its site, making it difficult to compete with larger platforms like Amazon and Shopify [9]