Will Buying ETSY Stock After its Q4 Earnings 2022 Worth?

As an e-commerce company, the business of Etsy Inc (NASDAQ:ETSY) soared in the early stages of the pandemic. But currently the company seems like it is struggling with changing consumer spending. Etsy finally increased buyers on the platform following various quarters of declines due to the economic reopening.

$ETSY price analysis

In the last week, the price of $ETSY stock declined by 4.83%, while it is down by 6.73% in one month. Before its fourth quarter results, $ETSY was trading in the price range of $128, which closed at $124.11 on its last day of trading with 5.68% of decline.

Source: ETSY/USD by Tradingview

Moreover, in the last six months $ETSY is 13.27% up and its year-to-date price analysis is also bullish with 2.14% of upsurge in its price. This whole data is sourced from Tradingview.

Currently, Etsy Inc has a market cap of $15.599 Billion, while its price-to-sales ratio is 7.38. The company has an Enterprise Value to EBITDA ratio of 34.68.

Etsy’s Q4 2022 performance highlights

Etsy Inc operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world. Last Wednesday, the e-commerce company announced financial results for its fourth quarter and full year ended December 31, 2022.

According to Etsy’s Q4 results, “Consolidated GMS was $4.0 billion, down 4.0% year-over-year and down 0.7% on a currency neutral basis; Etsy marketplace reported GMS of $3.7 billion, down 3.5% year-over-year and up 145% on a three-year basis.”

Meanwhile, “consolidated revenue was a record $807.2 million, up 12.6% year-over-year, with take rate increasing to 20%. Consolidated net income was $109.5 million, with consolidated net income margin of 14%, down 32.2% year-over-year, with diluted earnings per share of $0.77.”

After Q4 results, the Chief Executive Officer of Etsy Inc, Josh Silverman, said “We are extremely proud of our team’s ability to dramatically improve the Etsy customer experience over the course of 2022.”

In addition, Etsy’s Chief Financial Officer, Rachel Glaser, said “The Etsy marketplace’s strong holiday performance and accelerating year-over-three-year GMS in the fourth quarter enabled us to end the year on a high note.”

As per the Tradingview analysis, the technical analysis summary for Etsy Inc is indicating sell. While the 23 analysts offered one year price forecasts with a max estimate of $186 and a min estimate of $74.


The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading stocks or crypto comes with a risk of financial loss.

Nancy J. Allen
Latest posts by Nancy J. Allen (see all)

Source: https://www.thecoinrepublic.com/2023/02/27/will-buying-etsy-stock-after-its-q4-earnings-2022-worth/