Etsy Stock: Growth and Future Prospects of the Company

Etsy is well known for its vintage and handmade goods as well as craft supplies. The pandemic boosted the development and the firm garnered over 25 million new buyers (active). The company had a highly soaring growth during the past year which has made it stronger and has given it widespread popularity. The analysts are somewhat concerned about the further progress of the firm post the pandemic period. The company will continue to grow, this is for sure but the rate of growth is speculative. The addition of new buyers will help the company to maintain the ongoing progress.

Etsy Inc. (NASDAQ: ETSY)

  • 52 Week Range:  $29.95 – $239.47
  • Average Volume:  3,185,408
  • Market Capital:  $26.314B
  • Forward Dividend and Yield:  N/A (N/A)

The company’s stock has risen wholesomely by as much as 300% in the last year and this growth was all because the e-commerce industry was at its peak and the companies developed well. The little risk that is still there is that how the stock will perform after the pandemic gets over or the things get normalized in general.

Etsy and its Progress

For the third quarter, Etsy managed to earn revenue of $451.5 million and has surged up by 128.1% (year-over-year) basis. Also, the adjusted earnings have come out to be 70 cents. The result was better than as it was estimated by the analysts. At the end of quarter three, the company had a total of 69.6 active buyers (which have increased by 55%) and the number of active sellers has also gone up by 42% (3.7 million active sellers). The people in general, purchased a lot during the pandemic and all of that contributed to the growth of the e-commerce companies.

Etsy Inc. (NASDAQ: ETSY) Is it the Right Time to invest in the Stock?

If we take into account the progress, then the company has shown very good growth in that case. The future is a matter of concern but e-commerce has to grow further. The company will continue to rise but how many new additions will be there, lesser than before or more, that will determine the rate of growth of the firm.

It is as of now a good stock overall and profitable in terms of investing. The investors can surely rely on the firm for profits but how much profit, for that, they have to observe and keep track of the stock well. Therefore, the shareholders might wait as well so that the post-pandemic scenario also becomes somewhat clear, and then they can decide what the best is. The stock market is always volatile, the speed of the growth of this company has made it famous and now, we have to observe how well the company maintains its progress when things get normalized.

About Travis Garlick 1821 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.