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Etsy Stock: Year-to-Date Gains Are Up Twofold

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Stock nearly doubled

Year-to-date, Etsy (ETSY) stock has risen ~100% to $40.87 as of October 26. Its strong financial performance is the biggest driving factor. Over the trailing five quarters, it has delivered double-digit revenue growth and beaten analysts’ estimates.

As of October 26, Wayfair (W) has risen 35.5% year-to-date, and Shopify (SHOP) has risen 31.6%. eBay (EBAY) has fallen 27.6%, and Overstock (OSTK) has fallen 68.9%.

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What’s ahead?

Etsy is scheduled to report its third-quarter earnings on November 1. Its revenue is expected to increase 40.9%, but its bottom line is estimated to fall 66.7%. Etsy has been making a lot of changes. It raised its seller fees from 3.5% to 5%, and although that’s still much lower than Amazon’s fees, it remains to be seen how well the increase has gone down with Etsy sellers.

Etsy’s long-term prospects are expected to be good. Consumer preferences are shifting to online shopping, and Millennials are very comfortable with it. Etsy started as a seller of craft and vintage items, but over time, it has expanded to several other categories. Its strength in vintage crafts and goods is its driving force and helps it fend off competition from Amazon’s Handmade.

Etsy has also launched a monthly subscription package for sellers called Etsy Plus. For $10 per month, Etsy Plus users get all the features of Etsy Standard and advanced shop customization options. The company will also launch Etsy premium in 2019. The details should be available in the coming days.

Etsy is also expanding its footprint in Canada, the United Kingdom, Australia, and France. It expects a referral agreement with Germany-based DaWanda to boost its presence in Poland, Switzerland, Austria, and Germany.

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