1 Red Flag for Etsy Stock in 2023, and 1 Green Flag
If you're searching for growth at a reasonable price, (NASDAQ: ETSY) has likely landed on a few of your stock screens in recent months. The former Wall Street darling has been crushed lately, falling nearly 50% so far in 2023 even as most of its e-commerce peers have rallied. Etsy stock has become much cheaper, as a result, when compared to companies like eBay, Shopify, and Wayfair. Is this e-commerce stock now a bargain or a value trap?
Potential investors should do their best to approach any Etsy stock purchase with a clear understanding of the company's main challenges. Stocks don't typically decline by over 40% for no reason, after all. With that understanding in mind, let's look at a key factor pressuring the business, along with 1 reason to be optimistic about its earnings prospects.
Etsy made progress in consolidating most of the gains that it achieved during the booming growth days of the pandemic. Yet its sales trends still look weak compared to some e-commerce specialists. Sales volumes were flat on its platform last quarter, about even with eBay's performance, while Shopify reported an 18% year-over-year volume spike. Amazon reported accelerating growth in its product sales as well.
Source Fool.com
