Why Investors Should Be Excited About Etsy's $2 Trillion Opportunity
Although Etsy (NASDAQ: ETSY) reported fourth-quarter 2021 financial results that beat Wall Street's estimates on both the top and bottom lines, the stock has lost 40% of its value this year. Investors are concerned that weaker-than-expected revenue guidance of $577.5 million (at the midpoint) for the first quarter signals a more mature business and the end of the monster gains achieved as a result of the pandemic.
But it's best to zoom out and focus on Etsy's long-term potential rather than any particular quarter's results. Shareholders shouldn't worry about slowing revenue growth for this top e-commerce stock. Instead, they should be excited about the massive $2 trillion opportunity ahead.
While Etsy has users in dozens of different countries, the management team considers seven markets -- the U.S., U.K., Germany, Canada, Australia, France, and India -- as the company's core geographies. Etsy sees these countries as major growth opportunities and is therefore investing in improved product development and marketing capabilities.
Source Fool.com
