Is This the Biggest Reason to Be Bearish on Etsy Stock?
Gone are the days of monster growth for Etsy (NASDAQ: ETSY). The online marketplace for handcrafted, unique, and vintage goods did report a year-over-year revenue gain of 4.3% in Q4 2023, but gross merchandise sales (GMS) dropped 0.7%. Weaker spending activity on the platform is discouraging, particularly when you consider GMS also fell 4% in Q4 2022.
This e-commerce company's ongoing struggles reveal what I think might be the core of its bear case. Here's what investors need to know.
There's no denying Etsy's business was a major beneficiary of the coronavirus pandemic. People had extra cash from stimulus payments and less options to spend it on with social-distancing restrictions in place. These were favorable ingredients that led to strong user, revenue, and GMS gains for the company during the early months of the health crisis.
Source Fool.com
GMS Inc Stock
GMS Inc is currently one of the favorites of our community with 16 Buy predictions and no Sell predictions.
As a result the target price of 90 € shows a slightly positive potential of 5.26% compared to the current price of 85.5 € for GMS Inc.
