Here's What to Make of Etsy's Stock Correction
The specialty e-commerce marketplace Etsy (NASDAQ: ETSY) was a major winner throughout the coronavirus pandemic. Handcrafted masks, DIY home improvement kits, and personalized gifts kept millions of buyers safe and connected in 2020.
While no company can maintain triple-digit growth in the long term, Etsy stock took a hit when company leadership admitted that it expects growth to slow from its pandemic heights. However, Etsy's trajectory still makes it a compelling growth stock.
Etsy shares dropped almost 15% over the last week, following the company's earnings report for the first quarter of fiscal year 2021. The company's results exceeded expectations, with a 142% increase in revenue and a 1,048% increase in net income over the prior-year quarter. Gross merchandise sales (or GMS -- the total value of goods sold through the platform) increased 132% to $3.1 billion, and GMS per active buyer was up 20% over the prior-year period.
Source Fool.com
