After Etsy's Latest Move, Is the Stock a Buy -- or a Sell?
(NASDAQ: ETSY) shares have missed out on the rally so far this year. The stock has dropped more than 20%. The e-commerce company's earnings have suffered as economic headwinds weigh on the consumer's wallet -- and on general costs. Etsy offers makers of handmade goods a platform to sell their wares. Since these generally are discretionary items, it's clear demand suffers in a tough economic environment.
And, just last week, Etsy announced in a regulatory filing that it's selling a company it bought only two years ago. Etsy decided to let go of Elo7, a Brazilian company that's in the same business. This represents both good and bad news. So, considering this move, is Etsy stock a buy or a sell?
Etsy initially bought Elo7 for $217 million. At the time, Etsy said it saw "significant potential" in Brazil's e-commerce market. And Elo7 was among the top 10 e-commerce sites in the country.
Source Fool.com
