Etsy Posts Another Lackluster Quarter. Should Investors Still Consider Buying the Stock?

Etsy (NASDAQ: ETSY), an e-commerce marketplace for craftspeople and vintage goods, has fallen to its lowest level since the beginning of the pandemic in 2020. Financial results were lackluster in the third quarter of 2023, and despite e-commerce sales heating up elsewhere (like tech titan Amazon (NASDAQ: AMZN)), Etsy management provided no such rosy outlook for its final quarter of the year.

Nevertheless, by certain metrics, Etsy stock is starting to look incredibly cheap. Is it worth considering a buy, or is it time to move on?

First, a bit of good news. Etsy did report that gross merchandise sold (GMS) on its marketplaces tallied $3.04 billion in Q3 and revenue of $636 million came in above the midpoint of its most recent guidance. Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) profit margin of 28.4% also exceeded management's guidance. Free cash flow generation remained strong in the quarter at a nearly 33% margin.

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Source Fool.com