Why Etsy Stock Blasted 9% Higher on Tuesday
On Tuesday, numerous investors brought hobbyist website (NASDAQ: ETSY) into their portfolios. That followed the stock's inclusion on a small list of internet stocks favorited by an analyst. As a result, Etsy's share price ended the day more than 9% higher, a figure that convincingly trounced the 0.7% rise of the S 500 index.
That prognosticator was Evercore ISI's Mark Mahaney, who remains rather bullish on internet titles, despite the category surging 44% higher in price year to date as a group.
"Given the rally in the net stocks, we're tempted to downgrade our investment opinion," he wrote in a note published Tuesday morning. "But we won't for two reasons -- multiples are still depressed -- i.e., below average -- and fundamentals are still soft -- i.e., revenue growth rates are weak."
Source Fool.com
