Etsy Reports Decrease in 1 Key Metric. Does It Spell Trouble for the Stock?
In the third quarter, Etsy (NASDAQ: ETSY) reported revenue of $594.5 million and adjusted earnings per share of $0.58, both of which crushed the Wall Street analyst consensus estimate. What's more, the leadership team, led by CEO Josh Silverman, provided fourth-quarter guidance that really pleased investors. The stock is up 44% since the announcement.
But there was one critical metric shareholders might have missed in all the upbeat news, and it's something that can have a profound impact on this top e-commerce stock. Let's take a closer look.
Known for its unique and handcrafted goods, Etsy has registered tremendous growth over the years, and the COVID-19 pandemic further boosted the online marketplace as revenue surged 35% in 2021 after skyrocketing 111% in 2020. What's more, the business was able to add 50.0 million net-new active buyers and 4.8 million net-new active sellers during that two-year period.
Source Fool.com
