Etsy (ETSY) Stock Forecast & Price Target

Etsy has demonstrated strong revenue growth of 6.1% year-over-year, excluding the impact of the Reverb sale, which reflects its resilience in the competitive e-commerce market. The company reported significant improvement in Gross Merchandise Sales (GMS), particularly in the U.S., where GMS increased by 59% year-over-year, and Depop also showed robust performance with a 39.4% year-over-year rise in GMS. Additionally, the growth in reactivated buyers increased by 3.8% to 6.6 million, suggesting a positive trend in user engagement and retention on the platform.

Etsy's total active buyers have experienced a decline for the fifth consecutive quarter, decreasing by 4% year-over-year to 93.2 million, raising concerns about user engagement on its marketplace. Additionally, Depop's margins have seen a sequential decline, attributed to increased brand marketing investments, which are expected to hinder profitability and result in a 5% decline in EBITDA estimates in the near term. The company's overall performance continues to lag behind US e-commerce growth, largely due to sustained weakness in key categories such as home decor, along with the discretionary nature of its product offerings.