Etsy Stock Faces Challenges Amid Stagnant Growth

Etsy faces challenges as shares plummet 83% from 2021 peaks. The report highlights stagnant growth and declining active users, raising concerns for investors.

Date: 24-02-2025

AI Rating: 5

Earnings Per Share (EPS): The text doesn't provide explicit information about Etsy's EPS. Therefore, it's not included in this analysis.

Revenue Growth: Etsy's revenue increased by 2.2% in 2024, which suggests that the company may still be generating income, but this growth is notably sluggish.

Net Income: The report does not provide any specific figures or details regarding Etsy's net income.

Profit Margins: Information about profit margins, such as gross, operating, or net margins, isn't discussed in the report.

Free Cash Flow (FCF): Free cash flow details are not provided, leaving an absence of this key statistic in the analysis.

Return on Equity (ROE): The text does not mention anything regarding ROE, and thus this aspect is not evaluated.

Overall, the text indicates a significant decline in Etsy's stock performance, with shares down 83% from their peak in November 2021. The forward price-to-earnings (P/E) ratio is 8.9, suggesting that the stock may be undervalued. However, revenue growth of only 2.2% in 2024 and a 4.4% drop in gross merchandise sales (GMS) are significant concerns. The loss of active buyers and sellers further underscores potential issues with Etsy’s business model. While Etsy has experienced strong historical growth, recent trends imply a troubling shift towards cyclical performance, posing a risk to future profitability. Investors are advised to be cautious until GMS shows a healthy rebound.

Stocks: ETSY