Etsy Plunges 28% in a Year: Should You Hold or Fold the Stock?
From Nasdaq: 2025-04-01 09:59:00
Etsy’s stock has declined by 28.4% in the past year, underperforming the Retail-Wholesale sector and the S&P 500. Factors include a slowdown in consumer spending, leading to a 4.4% drop in gross merchandise sales. Competition from giants like Amazon, eBay, and Alibaba is also impacting Etsy’s market share.
To address these challenges, Etsy plans to enhance search and discovery, improve buyer experience, and support sellers with better tools. The company aims to boost global sales through localization and optimized logistics. These initiatives are expected to attract more buyers, improve sales, and drive long-term growth for Etsy.
Looking at financials, Etsy’s Q1 2025 earnings per share estimate is 53 cents, with a 10.42% year-over-year growth projection. Revenue estimates stand at $644.45 million, indicating a slight decline. Despite missing earnings estimates in the past, Etsy remains focused on growth strategies to navigate competition and economic headwinds.
In conclusion, while Etsy faces challenges in the e-commerce market, its niche for unique products and growth initiatives position it for long-term success. Investors may consider holding ETSY stock for now and monitor its performance in 2025 for a more favorable entry point. For more insights on stock recommendations, Zacks Investment Research offers a list of 7 best stocks for the next 30 days.
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