Etsy: Buy, Sell, or Hold?
The pandemic was a boon for the e-commerce sector as consumers avoided physical shopping in favor of spending online. (NASDAQ: ETSY) benefited from this trend, posting monster growth in 2020 and 2021. Things slowed down last year, unsurprisingly, after consumers returned to their normal behavior.
Etsy shares have fallen 57% since the start of 2022 and 22% this year alone. So it's safe to say that investors are pessimistic about this e-commerce stock. But it's not all bad news. Here's why investors might still want to consider buying Etsy for their portfolios.
Despite what Etsy's share-price performance might suggest, the business just reported what I think was a generally good quarter. Revenue of $641 million was up 10.6% year over year. But because gross merchandise sales (GMS) -- the amount of purchase volume occurring on Etsy's various marketplaces -- was down 4.6%, the revenue increase was driven by higher fees. The so-called take rate, which measures revenue as a percentage of GMS, was 21% in Q1.
Source Fool.com
