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Key Points
- Founded in 2005, Etsy grew rapidly as a marketplace for handmade and vintage goods, going public on the NASDAQ in 2015 and expanding with acquisitions like Reverb and Depop.
- Etsy’s stock saw significant volatility in 2023 and 2024, with sharp declines and partial recoveries driven by market conditions and competitive pressures.
- Etsy faces intense competition from Amazon and eBay, with recent sales declines and missed earnings underscoring the need for strategic growth to maintain its market position.
History [1][2]
Etsy’s journey started in 2005 when it was founded by Robert Kalin, Chris Maguire, and Haim Schoppik who were passionate about handmade and vintage goods. Operating out of a Brooklyn apartment, the founders sought to create a platform that would connect independent artisans with buyers seeking unique, artisanal products.
Etsy quickly gained traction. The platform provided a much-needed space for independent sellers to showcase their unique creations and vintage finds, reaching a wider audience than traditional craft fairs or antique stores. By 2008, Etsy had gained significant traction, boasting almost 450,000 of sellers and a burgeoning community of users.
In 2015, Etsy went public, debuting on the NASDAQ stock exchange under the ticker symbol “ETSY”. This milestone marked a significant step in Etsy’s journey from a fledgling startup to a publicly traded company, further solidifying its position in the e-commerce landscape.
In recent years, Etsy has made headlines in the finance world with notable acquisitions and strategic partnerships. In 2020, Etsy acquired Reverb, an online marketplace for musical instruments, expanding its portfolio and tapping into the growing market for vintage and used musical gear.
Additionally, in 2021, Etsy made waves with its acquisition of Depop, a fashion resale platform popular among Gen Z users, signalling its commitment to tapping into emerging trends and demographics.
As of 2022, the number of active sellers on the platform surpassed 7.4 million and has attracted about 95 million active buyers. These figures include buyers and sellers associated with Reverb and Depop.
Despite facing challenges from competitors and navigating the ever-evolving e-commerce landscape, Etsy remains a prominent player in the industry, celebrated for its commitment to supporting independent creators and fostering a vibrant community of buyers and sellers.
Etsy’s Share Price 2024
Here is how Etsy Inc has been performing on the stock market for the past year, as of 6 August 2024:
The Etsy stock saw a sharp decline in the second half of 2023, with the stock plummeting to a low of $58.20 on 2 November before closing at $61.63. This could be due to the company turning in another quarter of flat growth and offering disappointing guidance for the third quarter [3].
The stock saw some recovery at the beginning of 2024 where it traded at $82.84, an increase of 42.4% from its November low. However, the stock saw a decline from 12 February at $80.20, subsequently reaching a four-year low of $56.60 on 2 May. As of 22 May 2024, the stock had partially rebounded to $64.25 and continues to trend sideways.
Despite the company’s Q2 reports beating Wall Street analysts’ expectations, with revenue up 3% year on year to $647.8 million, the stock fell to its lowest of all time of $55.45 on 5 August 2024 [4].
| Etsy’s Stock Price History (Annual) [5] | ||||||
| Year | Average Stock Price | Year Open | Year High | Year Low | Year Close | Annual % Change |
| 2023 | $92.04 | $113.56 | $148.20 | $60.66 | $81.05 | -32.33% |
| 2022 | $114.01 | $209.93 | $209.93 | $69.00 | $119.78 | -45.29% |
| 2021 | $209.61 | $172.08 | $296.91 | $156.59 | $218.94 | 23.06% |
| 2020 | $98.05 | $45.19 | $197.38 | $31.69 | $177.91 | 301.60% |
| 2019 | $57.80 | $47.00 | $72.77 | $40.51 | $44.30 | -6.87% |
| 2018 | $37.13 | $20.83 | $57.43 | $17.73 | $47.57 | 132.62% |
| 2017 | $14.40 | $11.88 | $21.76 | $9.56 | $20.45 | 73.60% |
| 2016 | $10.65 | $8.24 | $15.81 | $6.36 | $11.78 | 42.62% |
When Was Etsy Inc Listed?
Etsy Inc. made its initial public offering (IPO) on the NASDAQ Stock Market on 16 April 2015 at $16 per share. On the day of its IPO, Etsy shares closed at $30 a share, which was a whopping 88% jump from its IPO price [6].
Today, it is trading at $60.78 as of 25 June 2024, a 280% increase from its IPO price.
About the stock: Etsy Inc
Etsy Inc Trading Information
- Primary exchange: NASDAQ
- Etsy Stock Symbol: ETSY
- Country: US
- Currency: USD
- Trading hours:
- Main: 9.30am to 4pm ET, Mon to Fri
- Pre-market: 4am to 9.30am
- After-market: 4pm to 8pm
Business Segment [7]
| Sector | Industry | Market Cap (As of 21 May 2024) | Revenue (2023) |
| Computer and Technology | Internet Services | $7.480B | $2.748B |
Etsy Inc. is a standout player in online retail, specialising in handmade, vintage, and unique goods. In 2023, Etsy had over 9 million active sellers and attracted over 96 million active buyers globally [8]. In the Internet services industry, Etsy’s platform provides a global marketplace for independent creators and buyers seeking distinctive products.
While many businesses faced falling sales during the pandemic, Etsy showcased resilience and even growth. Approximately 40% of sellers with a sale had double the number of sales in 2020 as compared to 2019, and nearly three quarters of these sellers had quadruple the number of sales [9].
Despite its remarkable performance during the pandemic, the company is now facing a stark decline in sales, signalling challenges ahead. With a staggering 70% decline in stock value and consecutive earnings misses in 2023 and 2024, the company’s financial health is under scrutiny. Intensifying competition from industry giants like Amazon and eBay further exacerbates its struggles in the fiercely competitive online commerce landscape [10].
Stock Split History
Etsy Inc. has not undergone a stock split since its inception in 2005.
What Could Affect Etsy’s Share Price
Slowdown in Consumer Spending [11]
In May 2024, Etsy’s stock price dropped after the company reported disappointing quarterly earnings. In a report by Investopedia, they cited a “challenging environment” for consumer spending.
A potential slowdown can lead people to tighten their budgets, buying lesser discretionary items.
Declining Sales Growth [12]
Etsy’s share price has struggled since its pandemic peak of $296.91 in November 2021, partly due to slowing sales growth.
In Etsy’s Q1 earnings, gross merchandise sales (GMS) totalled $3 billion, reflecting a decrease of 3.7% year-over-year on a reported basis and a 4.1% decline on a currency-neutral basis, missing the Zacks Consensus Estimate of $3.05 billion.
The Etsy marketplace specifically saw GMS of $2.6 billion, representing a 5.3% drop compared to the same quarter last year.
Because Etsy relies on people buying and selling goods on its platform, a decline in consumer spending can directly hurt their sales. Fewer sales translate to less revenue for Etsy, which can be a red flag for investors and lead to a drop in the stock price.
This highlights the importance of Etsy finding ways to reignite user growth and keep people buying on the platform.
Why Trade Etsy Stocks
Growth Potential [13]
Etsy occupies a distinct niche in the e-commerce realm, specialising in handmade and vintage goods. This niche market holds promise for investors anticipating continued expansion in consumer demand for such products.
The endorsement from activist investor Elliott Management, which now holds a 13% stake in the company, signals confidence in Etsy’s future growth trajectory.
Increased Competition
As Etsy’s sales trend downward, the intensifying competition within the e-commerce sector poses additional challenges. Should established players like Amazon or eBay broaden their product lines to include handmade or vintage goods, it could erode Etsy’s market dominance.
For investors, such a scenario could warrant consideration of shorting Etsy’s stock.
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References:
- “Etsy – statistics & facts – Statista”. https://www.statista.com/topics/2501/etsy/#topicOverview. Accessed 23 May 2024.
- “Etsy History: The Ultimate History of Etsy – Thrive on Etsy”. https://thriveonetsy.com/etsy-history/. Accessed 23 May 2024.
- “Why Etsy Stock Was Falling Today – The Motley Fool”. https://www.fool.com/investing/2023/08/03/why-etsy-was-falling-today/. Accessed 25 June 2024.
- “Etsy (NASDAQ:ETSY) Beats Q2 Sales Targets – Yahoo!Finance”. https://uk.finance.yahoo.com/news/etsy-nasdaq-etsy-beats-q2-201756300.html. Accessed 6 August 2024.
- “Etsy – 9 Year Stock Price History | ETSY – Macrotrends”. https://www.macrotrends.net/stocks/charts/ETSY/etsy/stock-price-history. Accessed 23 May 2024.
- “Etsy now worth over $3 billion. Stock jumps 88% after IPO – CNN Business”. https://money.cnn.com/2015/04/15/investing/etsy-ipo-16-a-share-wall-street/index.html. Accessed 25 June 2024.
- “Etsy Revenue 2013-2024 | ETSY – Macrotrends”. https://www.macrotrends.net/stocks/charts/ETSY/etsy/revenue. Accessed 23 May 2024.
- “Etsy – statistics & facts – Statista”. https://www.statista.com/topics/2501/etsy/. Accessed 25 June 2024.
- “New Data Show Etsy’s Role in Supporting Creative Entrepreneurs Around the World – Medium”. https://medium.com/etsy-impact/new-data-show-etsys-role-in-supporting-creative-entrepreneurs-around-the-world-a17aa5f460e4. Accessed 25 June 2024.
- “Etsy boomed during the Pandemic. But now it’s at a crossroads. Here’s why – CNBC”. https://www.cnbc.com/video/2024/05/19/etsy-online-shopping-discretionary-spending-handmade-goods.html. Accessed 23 May 2024.
- “Etsy Stock Dives as Retailer Warns of ‘Challenging Environment’ for Consumer Spending – Investopedia”. https://www.investopedia.com/etsy-q1-2024-earnings-weak-consumer-spending-8642325. Accessed 23 May 2024.
- “ETSY’s Q1 Earnings Miss Estimates, Revenues Increase Y/Y – Zacks”. https://www.zacks.com/stock/news/2267252/etsys-q1-earnings-miss-estimates-revenues-increase-yy. Accessed 23 May 2024.
- “Activist investor Elliott gains board seat at Etsy – Reuters”. https://www.reuters.com/technology/activist-investor-elliott-gains-seat-etsy-has-13-economic-stake-company-2024-02-01/. Accessed 23 May 2024.
