What to Watch With Etsy Stock in 2026

Core Insights - Etsy has experienced significant changes in its business fortunes due to external events like the COVID-19 pandemic, which initially boosted online shopping and revenue growth, but has since seen a decline in financial results [1] - The stock is currently trading 82% below its all-time high, with shares rising less than 0.5% in 2025, indicating potential buying opportunities for investors [2] Financial Performance - Gross merchandise sales (GMS) peaked at $12.2 billion in 2021 but fell to $10.9 billion in 2024, with a 2.4% decline in the latest quarter ending September 30, 2025 [4] - The marketplace specializes in unique, vintage, and handcrafted goods, which are discretionary purchases and do not encourage repeat transactions, especially in a tightening economic environment [5] Future Outlook - Key metrics to monitor for Etsy's potential turnaround in 2026 include GMS and the user base, with a focus on increasing transaction volume and attracting more sellers and buyers [6] - The company's success will be influenced by the macroeconomic environment, including interest rates and consumer spending, although recent economic conditions have not benefited Etsy [7] - Investors should pay attention to the company's growth challenges and the market's low expectations for its future performance [8]