- ETSY is trading at a 50% discount to its fair value estimate.
- Wide moat with Standard capital allocation
- Down 80% from its all time high.
- Technicals look very attractive.
That said, ETSY currently ranks poorly on my screens, so this is purely a technical/contrarian trade idea. GreenBlue Rank: 1845
Company Description:
Etsy operates a top-10 e-commerce marketplace operator in the U.S. and the U.K., with sizable operations in Germany, France, Australia, and Canada. The firm dominates an interesting niche, connecting buyers and sellers through its online market to exchange vintage and craft goods. With $13.2 billion in 2023 consolidated gross merchandise volume, Etsy has cemented itself as one of the largest players in a quickly growing space, generating revenue from listing fees, commissions on sold items, advertising services, payment processing, and shipping labels. As of the end of 2023, the firm connected more than 96 million buyers and 9 million sellers on its marketplace properties: Etsy, Reverb (musical equipment), and Depop (clothing resale).