Etsy (NASDAQ: ETSY) just capped off a banner 2019 with record revenue of $818.4 million and nearly $5 billion in gross merchandise sales through its platform. But this online marketplace for one-of-a-kind handcrafted items is seeing decreased demand as consumers cut back on discretionary spending due to the coronavirus outbreak. Although the stock has rebounded from recent lows, it's still down 14% over the past year.
Let's dive into the business, its growth engines, and what management is doing in the face of current events to determine whether it's currently a buy.
Etsy has a strong people-centric ecosystem that connects 46.4 million active buyers with 2.7 million active sellers. Shoppers are attracted to the millions of unique items available on the platform, 30% of which can be customized, and the one-to-one relationship buyers can have with a seller. On the flip side, sellers are attracted to the platform that's known for offering goods that 88% of buyers indicate they can't buy anywhere else.
Source Fool.com