(NASDAQ: ETSY) stock has been a poor performer in 2023, down by more than 30% through late May. The online marketplace operator had an even worse run since markets began falling in late 2021. Etsy's near-term growth prospects have darkened considerably since that time as consumers tilted their spending back toward more normal patterns.

But Wall Street has overreacted to the company's short-term challenges, and that has created a potentially excellent buying opportunity for patient investors.

It's true that Etsy's revenue trends don't look impressive at first glance. Sales volumes on the platform fell 3% in the first quarter, which is hardly an impressive statistic for a growth stock.

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Source Fool.com