Etsy Isn't a Value Stock, but It's Still a Solid Buy Right Now
Etsy (NASDAQ: ETSY) did especially well in the first quarter of 2020 by responding early to what was still viewed at the time by most as just a potential threat. The online marketplace for craft goods launched a COVID-19 task force in January and started testing work-from-home capabilities in February. That, combined with the surge in online spending that ensued, allowed the company to do quite well in the face of adversity.
The stock is now up nearly 80% year to date, and it's far from the value I said it was in March during the worst of the market meltdown. Still, after a great Q1 report, this e-commerce leader is a solid long-term buy.
Coronavirus hasn't been a "win" for anyone, to say the least. Though many digital businesses are reporting increased demand for their services -- Etsy included -- thousands of lives directly affected by the virus itself and the tens of millions of lives indirectly affected due to job loss is simply heartbreaking news. The coronavirus pandemic has created a Catch-22 in the purest sense of the term: Respond to the health crisis by shutting down the economy, and many will lose work; respond to the economic crisis and leave the economy open (or open it back up too soon), and the virus could resume its spread and put stress on the healthcare system. It would be wrong to call Etsy a winner because of the crisis, but the company did its part in addressing both sides of the Catch-22.
Source Fool.com
