Latest news with #EtsyInc
Yahoo
29-06-2025
- Business
- Yahoo
Truist Lifts Etsy Price Target Amid Surge in User Growth
Etsy, Inc. (NASDAQ:ETSY) is one of the best consumer cyclical stocks to buy. On June 17, Truist Securities maintained its Buy rating on Etsy, Inc. (NASDAQ:ETSY), but increased its price target to $60 from $ price target rise follows after Truist Card Data revealed that Etsy's Marketplace revenue quarter-to-date through June 11 is exceeding forecasts. Truist also observed a surge in the number of monthly active users, which increased year-over-year and reached its highest level in 22 months. This indicates that the company's growth activities are having a favorable impact. Along with increased marketing effectiveness that has allowed Etsy, Inc. (NASDAQ:ETSY) to win more ad auctions, these efforts also include improvements in product quality, particularly discoverability and quality score. Etsy, Inc. (NASDAQ:ETSY) operates two-sided online marketplaces that link millions of creative customers and sellers globally. The company manages Reverb, Depop, and Elo7 in addition to its main marketplace, Etsy, which specializes in unique and creative products. While we acknowledge the potential of ETSY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Read More: and Disclosure: None.
Yahoo
29-06-2025
- Business
- Yahoo
Truist Lifts Etsy Price Target Amid Surge in User Growth
Etsy, Inc. (NASDAQ:ETSY) is one of the best consumer cyclical stocks to buy. On June 17, Truist Securities maintained its Buy rating on Etsy, Inc. (NASDAQ:ETSY), but increased its price target to $60 from $ price target rise follows after Truist Card Data revealed that Etsy's Marketplace revenue quarter-to-date through June 11 is exceeding forecasts. Truist also observed a surge in the number of monthly active users, which increased year-over-year and reached its highest level in 22 months. This indicates that the company's growth activities are having a favorable impact. Along with increased marketing effectiveness that has allowed Etsy, Inc. (NASDAQ:ETSY) to win more ad auctions, these efforts also include improvements in product quality, particularly discoverability and quality score. Etsy, Inc. (NASDAQ:ETSY) operates two-sided online marketplaces that link millions of creative customers and sellers globally. The company manages Reverb, Depop, and Elo7 in addition to its main marketplace, Etsy, which specializes in unique and creative products. While we acknowledge the potential of ETSY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Read More: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-05-2025
- Business
- Yahoo
Etsy Inc (ETSY) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic Growth ...
Consolidated GMS: $2.8 billion, down approximately 6.5% year over year. FX Impact on GMS: 80 basis point headwind versus prior year. Etsy Marketplace GMS: Down 8.9% year over year. Consolidated Revenue: $651 million, increased by approximately 1% year over year. Marketplace Revenue: Decreased 1.8% year over year. Services Revenue Growth: 7.7% year over year. Adjusted EBITDA: $171 million, representing a 26.3% margin. Take Rate: Improved to 23.3%, an increase of 170 basis points over the previous year. Product Development Spending: $111 million, up slightly year over year. Marketing Spend: Decreased 1% year over year to $189 million. Free Cash Flow: $35 million for the quarter; $685 million for the trailing 12 months. Share Repurchase: $189 million allocated during the first quarter. Cash Balance: Nearly $1 billion at the end of the period. Reverb Sale: Announced sale for $105 million in an all-cash transaction. Net Loss Impact: $102 million non-cash impairment charge associated with Reverb sale. Warning! GuruFocus has detected 4 Warning Sign with ETSY. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Etsy Inc (NASDAQ:ETSY) reported a slight beat on take rate and adjusted EBITDA margin for Q1 2025, indicating strong financial management. The company is making significant strides in enhancing its mobile app, with app GMS reaching an all-time high of 44.5% of total Etsy Marketplace GMS. Etsy Inc (NASDAQ:ETSY) is leveraging advanced AI and machine learning to deliver personalized shopping experiences, which is expected to drive buyer engagement and frequency. The company has a resilient business model with a diverse global seller base, which has proven robust against macroeconomic shocks. Etsy Inc (NASDAQ:ETSY) is actively working on improving its product and marketing strategies, which are expected to drive growth throughout 2025. Etsy Inc (NASDAQ:ETSY) reported a 6.5% year-over-year decline in consolidated GMS for Q1 2025, reflecting ongoing challenges in consumer discretionary spending. The company is facing macroeconomic headwinds, including potential impacts from global tariffs and changes to de minimis exemptions. Active buyer metrics remain muted, with a 3.4% decline in active buyers, attributed to macroeconomic factors affecting consumer spending. Etsy Inc (NASDAQ:ETSY) anticipates a challenging second quarter with a similar or slightly better year-over-year GMS decline compared to Q1. The company is experiencing some gross margin headwinds due to higher processing costs and investments in machine learning and search development. Q: Could you update us on the full-year outlook and the second-quarter EBITDA margin guide? Are you leaning more on social media platforms for marketing spend? A: The macroeconomic backdrop remains challenging, and our outlook assumes no major changes. We are encouraged by our product and marketing efforts, which should improve growth over the year. We are seeing progress in social marketing and reactivating prior lapsed buyers. Regarding the second-quarter margin, we expect some deleverage due to increased marketing spend, particularly in paid social, where we are making encouraging progress. Q: What's next on the app product roadmap, and how do you see the app's share of GMS evolving? A: Our app reached an all-time high of 44.5% of total GMS. We aim to increase this by driving more users from mobile web to the app. The app offers a better shopping experience, especially for browsing. Our next step is to personalize these experiences further, using data to tailor the shopping journey to individual preferences. Q: Are you concerned that the decline in active sellers is affecting active buyers? A: No, the decline in active sellers is due to our $29 new shop setup fee, which filters out those without the skill or will to succeed. The percentage of sellers making sales is up, and retention is higher. The decline in active buyers is attributed to macroeconomic factors, not a lack of interest in Etsy. Q: Can you explain the flat take rate guidance for Q2, given the usual sequential improvement? A: We are lapping dynamics that helped grow the take rate, such as the new seller fee and improvements in Etsy ads. We expect the take rate to remain consistent throughout the year, reflecting these past increments. Q: How do you see AI shopping experiences, like those with OpenAI and Copilot, impacting e-commerce and Etsy? A: AI shopping could benefit Etsy by offering consumers unique, artisanal choices alongside standard options. We have strong partnerships with major GenAI providers, which recognize our unique data set. These developments could enhance Etsy's visibility and appeal in the evolving e-commerce landscape. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
18-04-2025
- Business
- Yahoo
Is Etsy Inc. (NASDAQ:ETSY) the Best High Short Interest Stock to Buy Now?
We recently published a list of the 10 Best High Short Interest Stocks to Buy Now. In this article, we are going to take a look at where Etsy Inc. (NASDAQ:ETSY) stands against other high short interest stocks to buy now. Aditya Bhave, BofA Securities head of US Economics, joined 'Power Lunch' on CNBC on April 17 to talk about whether tariffs are ultimately inflationary, disinflationary, or deflationary. Aditya Bhave responded that the impact depends on the magnitude of the uncertainty shock. He explained that tariffs are generally stagflationary, which means that they contribute to both inflation and economic stagnation. However, he also emphasized that it's not just the content of the trade policy announcements that matters, but also the disruptive way in which these policies have been communicated, which has increased uncertainty for businesses. He noted that there is a scenario where the uncertainty caused by these policies could outweigh their stagflationary effects, making tariffs disinflationary instead. Bhave also referenced Fed Chair Jerome Powell's recent hawkish remarks and drew a parallel to Powell's stance during the 2021–2022 rate hiking cycle. He highlighted Powell's assertion that sustained full employment is not possible without price stability, which is a justification that Powell previously used for aggressive rate hikes even during a technical recession. Bhave believes the Fed is likely to maintain its focus on price stability and continue its current policy approach in the near term. Earlier during the COVID-19 pandemic, the Fed and Powell in particular, notably responded to tariff-induced supply chain disruptions by aggressively stimulating the economy. Bhave argued that this aggressive response came after and not during the initial supply chain disruptions, and that while the Fed may have acted a bit late, it ultimately raised rates sharply by 425 basis points in a single year. He does not expect the Fed to repeat such aggression, but believes that the case for holding rates steady is strong right now. We first sifted through stock screeners to find companies with a short interest between 10% and 25%. We then selected the 10 stocks that were the most shorted as of April 16, but at the same time were popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database, which tracks the moves of over 1000 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A young woman shopping for a vintage fashion item online. Short % of Float As of April 16: 19.45% Number of Hedge Fund Holders: 58 Etsy Inc. (NASDAQ:ETSY) operates two-sided online marketplaces that connect buyers and sellers worldwide. It operates through three segments: Etsy, Reverb, and Depop. It primarily operates the Etsy marketplace that connects artisans and entrepreneurs with various consumers. It also offers Reverb, which is a musical instrument marketplace, and Depop, which is a fashion resale marketplace. The Etsy marketplace is central to the company's growth, but it faced challenges in 2024, with GMS (Gross Merchandise Sales) declining by 8.6% year-over-year in Q4. For the full year, Etsy marketplace GMS was down 4% from 2023 and reached $12.6 billion for the consolidated entity. This underperformance is attributed partly to prioritizing longer-term customer experience improvements over near-term conversion-driving experiments. Despite the GMS decline, the Etsy marketplace led a consolidated record revenue of $2.8 billion, which was up ~2% year-over-year. This was achieved through initiatives like Etsy Ads and consolidated payments. In Q4 alone, consolidated revenue increased by 1.2% year-over-year to a record $852 million. The company's strategy for 2025 centers on focusing on Etsy Inc.'s (NASDAQ:ETSY) differentiation by emphasizing its unique selection of over 100 million creative goods. Oakmark Global Fund stated the following regarding Etsy, Inc. (NASDAQ:ETSY) in its Q2 2024 investor letter: 'Etsy, Inc. (NASDAQ:ETSY) is a global marketplace for unique and creative goods that connects millions of buyers and sellers across the world. We first became interested in Etsy in 2017 when Josh Silverman took over as CEO and began transforming the company from a borderline nonprofit into a higher margin, faster-growing enterprise. The Covid-19 pandemic accelerated the company's already strong fundamental results as millions of new customers flocked to the platform, but like many other Covid-19 beneficiaries, Etsy has since fallen deeply out of favor. In our view, investors today are too focused on the timing of Etsy's return to growth and are ignoring the company's positive long-term outlook. We believe the macro environment for Etsy's product categories will eventually improve and Etsy is poised to benefit. At the same time, we believe Etsy's continued push into international markets can provide a solid source of revenue growth for the long-term. After the recent sell-off, we were able to purchase shares at a discount to our estimate of intrinsic value.' Overall, ETSY ranks 4th on our list of the best high short interest stocks to buy now. While we acknowledge the growth potential of ETSY, our conviction lies in the belief that AI stocks hold great promise for delivering high 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 the 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. 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Yahoo
20-02-2025
- Business
- Yahoo
Etsy Stock Declines Amid Q4 Shortfall But Long-Term Strategy Could Pay Off, Say Analysts
E-commerce company Etsy Inc (NASDAQ:ETSY) reported fourth-quarter FY24 earnings yesterday. The following are the opinions of different analysts on the same. Needham analyst Bernie McTernan reiterated a Buy rating on the shares and maintained a price forecast of $60.00. In the fourth quarter, GMS fell short of expectations, primarily due to ongoing challenges in consumer discretionary spending, noted the analyst. Additionally, the company chose to focus on long-term initiatives instead of short-term growth, along with a shorter holiday season. The shift to long-term investments is estimated to have impacted GMS by a few hundred million, but it also laid the groundwork for initiatives expected to drive growth in 2025, such as personalization, a new marketing mix, and app development. The analyst is taking a more conservative approach to the GMS model, assuming only a slight improvement in the YoY declines in the second quarter, 4% YoY declines in the latter half of 2025 and <1% GMS growth in '26E, considering this as a prudent approach given the uncertainty from leadership changes, strategic shifts, and ongoing macroeconomic pressures on consumer spending. ETSY is boosting customer engagement and frequency through initiatives like gifting, quality improvements, a new loyalty program, and app investments. Gifting sales in 2024 outperformed the broader marketplace, contributing 29% to total GMS. Although its still early, management is seeing promising signs of increased frequency and user engagement on Etsy Insider, noted the analyst. For FY25E, the analyst lowers GMS estimates by -6% and FY25E adj. EBITDA estimates come down by ~10%. The challenges impacting e-commerce consumer spending have affected the entire sector, but the analyst notes Etsy has the opportunity to emerge stronger. By leveraging the larger scale gained during the pandemic, Etsy can enhance the user experience, which should drive increased consideration for the marketplace and more frequent purchases, concluded the analyst. Also Read: Canaccord Genuity analyst Maria Ripps maintains a Buy rating on the shares and lowers the price forecast from $105.00 to $76.00. The analyst said that Etsy posted mixed results for the quarter, with active buyers, GMS, and revenue falling short of expectations, while take rate and profitability exceeded forecasts. Marketplace activity was sluggish in October and November, and the company acknowledged that prioritizing foundational product development over short-term GMS drivers led to a GMS headwind of several hundred million, impacting the fourth quarter and first quarter. However, Etsy returned to a more balanced product development strategy at the start of the year, expecting benefits to grow throughout 2025. With strategic initiatives like expanding Gifting, boosting loyalty program adoption, improving personalization, and increasing app downloads, management anticipates improving GMS year-over-year trends. Nevertheless, the first quarter is expected to be another tough quarter, with GMS declining similarly to the fourth quarter. Profitability expectations were slightly below forecasts, with margins expected to improve in the second half of 2025. Despite pressure on Etsy shares, the stock now trades at about 3x FY25 revenue and 10x adjusted EBITDA, suggesting significant negative sentiment is already priced in. If consumer discretionary spending rebounds and growth initiatives yield stronger results, investor confidence could recover, with further upside if the de minimis exemption is repealed and competition eases, noted the analyst. Price Action: ETSY shares are trading lower by 1.47% at $50.77 at the last check Thursday. Read Next:Image via Shutterstock. Date Firm Action From To Mar 2022 Deutsche Bank Initiates Coverage On Hold Feb 2022 Truist Securities Maintains Buy Feb 2022 UBS Upgrades Sell Neutral View More Analyst Ratings for ETSY View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? ETSY (ETSY): Free Stock Analysis Report This article Etsy Stock Declines Amid Q4 Shortfall But Long-Term Strategy Could Pay Off, Say Analysts originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
