Why Etsy Stock Dropped 12% in September
Shares of (NASDAQ: ETSY) stock dropped 12% in September according to data provided by S&P Global Market Intelligence. It reported disappointing second-quarter earnings results in August, and investor pessimism continued into September.
Etsy was an early pandemic darling, gaining millions of new customers for its handcrafted and vintage products. Sales soared for custom masks and other items, but it has not been able to keep up high growth. Even a few years out, it's still struggling to return to growth.
Revenue increased a respectable 7.5% in the 2023 second quarter, but that was entirely due to fee hikes. Gross merchandise sales (GMS) were down less than 1%. Net income was $62 million, down $11 million from last year, although that included an impairment charge for the sale of Elo7, a business it had acquired two years ago.
Source Fool.com
