Shares of Etsy (NASDAQ: ETSY) stock lost 6% in October according to data provided by S&P Global Market Intelligence. At the same time, the S&P 500 gained 7.5%. Investors might be preparing for a potentially disappointing third-quarter earnings report.

Etsy didn't report any significant news in October, but it was impacted by economic and industry trends. Fellow e-commerce companies Amazon and Shopify, which together account for around half of total U.S. e-commerce gross merchandise sales, both reported mixed earnings results. Investors sent Amazon stock plummeting on its report, mostly due to its outlook, while they gave Shopify stock a boost after it reported healthy revenue growth.

Etsy stock has come under pressure since growth decelerated after the pandemic. So far, it has continued to post sales growth and has remained profitable, which should signal some confidence. But triple-digit sales growth has turned into single- or double-digit growth over the past few quarters, and gross merchandise volume (GMV) was slightly negative year over year in the 2022 second quarter. That included a 6% drop in Etsy's core GMV. It was able to post revenue growth in that quarter mostly by raising its fee for sellers, but it was also aided by performance in some of its acquired companies as well as ad revenue.

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Source Fool.com