Etsy Stock Dropped 32% in 2023 Even Though the Market Had a Great Year. Here's Why.

Shares of handcrafted goods e-commerce platform Etsy (NASDAQ: ETSY) dropped 32.3% in 2023, according to data provided by S&P Global Market Intelligence. That drop might not sound so bad. However, the S&P 500 was up 24% last year. Therefore, Etsy stock underperformed by a painful amount for shareholders.

Normally when looking at a full-year chart, investors can see sharp increases and decreases in the stock price, signaling which events were most significant. But in the case of Etsy, the chart below shows that the decline was steady and gradual from about February through November.