Core Insights - Etsy's stock experienced significant growth during the early pandemic years but has since declined over 70% from its peak in late 2021 despite a strong year-to-date performance [1][2] Company Performance - Etsy's gross merchandise volume decreased by 4.8% year over year to $2.8 billion in the second quarter, while revenue increased by 3.8% year over year to $672.7 million. Earnings per share fell by 39% year over year to $0.25 [4] - Active sellers on the platform dropped by 7.8% year over year to 8.1 million, and active buyers decreased by 3.4% year over year to 93.3 million [5] Competitive Landscape - Etsy faces significant competition from low-cost alternatives such as Temu and Shein, which has contributed to its declining performance and user growth [5] Strategic Developments - Etsy announced a partnership with OpenAI, allowing U.S. merchants to sell products directly on ChatGPT, potentially increasing visibility and sales for Etsy's merchants [6][7] - Following the announcement of the partnership, Etsy's shares jumped by more than 15% in one day, indicating a positive market reaction [2]