Etsy Stock Has Had a Rough Time Of It. Here's Why It's Rising Today.

Core Insights - Etsy's stock is experiencing a rise due to the announcement of selling its fashion marketplace Depop to eBay for $1.2 billion in cash, marking a strategic shift back to its core business focus [1][1][1] Group 1: Business Strategy - The sale of Depop signifies the end of Etsy's "house of brands" era, which previously included three other businesses, indicating a strategic refocus on its primary marketplace [1][1] - Etsy's management aims to concentrate on growing the Etsy marketplace, which had nearly 87 million buyers by the end of 2025, despite a year-over-year decline in global merchandise sales [1][1] Group 2: Financial Performance - Following the announcement, Etsy's shares rose approximately 9% to around $48, although the stock remains down for the year and over the past 12 months [1][1] - The sale of Depop, which was acquired for $1.6 billion in 2021, is seen as a positive outcome for Etsy's shareholders, as it allows the company to focus on its core operations [1][1] Group 3: Market Reaction - The news of the sale positively impacted eBay's shares, which rose about 5% in response to the acquisition announcement [1][1] - Wall Street analysts maintain a bullish outlook on Etsy's stock, with a mean price target of $67, although this is significantly lower than its previous peak [1][1]