Should Investors Be Worried About Etsy's Stock-Based Compensation?
As e-commerce has given back some of the ground it took from physical stores this past year, e-commerce stocks have suffered, and Etsy (NASDAQ: ETSY) is no exception. In some metrics, like total value of goods sold via its marketplace, Etsy has contracted in 2022.
But the business is still being run like a growth business. CEO Josh Silverman talked on the last earnings call about a large backlog waiting to be addressed of new projects that can fuel future expansion. And that's part of the reason Etsy stock has been clobbered by 50% in 2022: Growth businesses are being punished.
Also, one hangup some investors have with growth stocks is stock-based compensation. Here too, Etsy is no exception, as it pays stock-based comp to its employees. Should investors be worried?
Source Fool.com
