Why Etsy, Inc. (ETSY) Went Down On Wednesday

Yahoo

02-05-2025

We recently published a list of . In this article, we are going to take a look at where Etsy, Inc. (NASDAQ:ETSY) stands against other worst-performing stocks on Wednesday. A lackluster trading persisted on the stock market anew on Wednesday, with the three major indices finishing mixed, as investors digested news of the US economy's contraction in the first quarter of the year, triggering fears of recession. Among all major indices, only the Dow Jones and S&P 500 ended in the green, up 0.35 percent and 0.15 percent, respectively. In contrast, the tech-heavy Nasdaq dipped by 0.09 percent. Ten companies also mirrored the wider market downturn, predominantly due to dismal earnings performance and tempered growth outlook for the remainder of the year. In this article, we have named 10 of the worst-performing stocks on Wednesday and detailed the reasons behind their drop. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.
A young woman shopping for a vintage fashion item online.
Etsy dropped its share prices by 5.74 percent on Wednesday to finish at $43.48 apiece as investors soured on the company's financial performance for the first quarter of the year. In its earnings release, Etsy, Inc. (NASDAQ:ETSY) said it swung to a net loss of $52 million from a $63 million net profit in the same period a year earlier, reflecting an impairment charge of $101.7 million to the goodwill of Reverb. Revenues, on the other hand, ended flat at $651 million, but were driven by significant growth in on-site advertising revenue for both Etsy and Depop, a full quarter impact of the seller set-up fee, and continued benefit from Payments expansion. Further weighing down on the sentiment was a notable decline in the number of active buyers year-on-year, down 3.4 percent to 88.5 million. 'We are keeping a clear eye on Etsy's long-term opportunities, while also staying nimble in the face of uncertainty given recent tariff announcements and the fluid state of consumer confidence in our core markets,' said ETSY Chief Financial Officer Lanny Baker. Overall, ETSY ranks 9th on our list of worst-performing stocks on Wednesday. While we acknowledge the potential of ETSY as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ETSY but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.