Etsy Stock Slumps 12.6% Following Major CEO Announcement

Core Insights - Etsy announced its third-quarter results and a significant leadership change, with Josh Silverman stepping down as CEO and Kruti Goyal taking over [1][4] - Despite better-than-expected Q3 earnings, the stock fell 12.6% due to negative investor sentiment regarding leadership changes and other bearish factors [2][8] Financial Performance - Etsy reported earnings per share (EPS) of $0.63 on sales of $678 million, surpassing analyst expectations of $0.53 EPS on revenue of $655.3 million [5] - Year-over-year sales increased by 2.4%, and EPS rose by 40% compared to the previous year [5] - Gross merchandise sales (GMS) declined by 6.5% year over year, although it exceeded expectations [6] User Metrics - Active sellers on the platform decreased by 0.2%, while active buyers fell by 3.7% [6] - The decline in active users raises concerns about the platform's growth potential [8] Future Guidance - For the current quarter, Etsy projects GMS between $3.5 billion and $3.6 billion, down from $3.7 billion in the same quarter last year [7] - The guidance may have disappointed investors, especially following the recent integration with OpenAI's ChatGPT for instant purchasing [7]