Etsy Intrinsic Stock Value – Etsy Shares Plummet After Announcing Drastic Job Cuts

🌥️Trending News

Etsy ($NASDAQ:ETSY), an online marketplace for independent creators and artisans to sell handmade and vintage goods, recently experienced a major stock drop following the company’s announcement of a restructuring plan that involves drastic job cuts. Etsy’s job cuts are part of a larger effort to make the company more profitable in the long-term. While it remains to be seen how successful these cost-cutting measures will be in helping Etsy achieve this goal, investors have expressed concern about the impact these cuts will have on the company’s ability to compete in the ecommerce market.

Market Price

On Wednesday, ETSY shares took a severe hit after the company announced drastic job cuts. The stock opened at $86.0 and closed at $84.0, resulting in a 2.2% drop from the last closing price of 85.8. The announcement came as a shock to many investors, and the stock plummeted in response.

This continuous decline is a huge blow to ETSY, as it has been struggling to stay afloat in the ecommerce industry. It remains to be seen how the company will recover from this sharp decline in its stock price. Etsy_Shares_Plummet_After_Announcing_Drastic_Job_Cuts”>Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Etsy. etsy&utm_title=Etsy_Shares_Plummet_After_Announcing_Drastic_Job_Cuts”>More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Etsy. etsy&utm_title=Etsy_Shares_Plummet_After_Announcing_Drastic_Job_Cuts”>More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Etsy. etsy&utm_title=Etsy_Shares_Plummet_After_Announcing_Drastic_Job_Cuts”>More…

Key Ratios Snapshot

Some of the financial key ratios for Etsy are shown below. etsy&utm_title=Etsy_Shares_Plummet_After_Announcing_Drastic_Job_Cuts”>More…

Analysis – Etsy Intrinsic Stock Value

At GoodWhale, we have conducted an analysis of ETSY’s fundamentals. We have determined that the intrinsic value of ETSY share is around $169.4, calculated by our proprietary Valuation Line. This means ETSY stock is currently traded at $84.0, undervalued by 50.4%. This presents an attractive buying opportunity for investors looking for long-term returns. Our analysis indicates that over time, the share price of ETSY should increase to match its intrinsic value. Etsy_Shares_Plummet_After_Announcing_Drastic_Job_Cuts”>More…

Peers

Etsy Inc is a leading ecommerce company that focuses on selling handmade and vintage items. The company competes with other ecommerce giants such as eBay Inc, Poshmark Inc, and Zalando SE. Etsy has a loyal customer base and a strong brand identity. The company differentiates itself from its competitors by offering unique items that cannot be found elsewhere. Etsy is a publicly traded company that was founded in 2005.

– eBay Inc ($NASDAQ:EBAY)

eBay Inc is an American multinational e-commerce corporation based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in 1995, and became a notable success story of the dot-com bubble. Today, it is a multibillion-dollar business with operations in about 30 countries.

The company has a market cap of 21.15B as of 2022 and a Return on Equity of -37.67%. eBay’s business model is based on enabling sellers to offer their items for sale on the platform, and buyers to find items they are looking for and purchase them. The company does not own or inventory the items being sold on its platform – instead, it simply facilitates the transaction between buyers and sellers.

eBay makes money by charging sellers a listing fee for each item they list for sale on the platform, as well as a commission on each item that is sold. In addition, the company also generates revenue from advertising and other fees.

– Poshmark Inc ($NASDAQ:POSH)

Poshmark is a social commerce platform for buying and selling fashion. It has a community of over 50 million sellers and buyers. Poshmark was founded in 2011 and is headquartered in Redwood City, California.

Poshmark’s market cap is 1.4B as of 2022. The company has a Return on Equity of -9.05%. Poshmark is a social commerce platform for buying and selling fashion. It has a community of over 50 million sellers and buyers. Poshmark was founded in 2011 and is headquartered in Redwood City, California.

– Zalando SE ($OTCPK:ZLNDY)

Zalando SE is a publicly traded German e-commerce company specializing in fashion, headquartered in Berlin. Founded in 2008, Zalando SE went public in 2014. As of 2022, Zalando SE has a market cap of 5.9B and a Return on Equity of 4.78%.

Zalando SE offers a platform for fashion and lifestyle. The company offers a wide range of products from over 2,000 brands for women, men, and children. The company operates in 15 European countries.

Summary

Etsy Inc. (ETSY) recently announced a restructuring plan that includes deep job cuts, resulting in a dramatic decrease in its stock price. Analysts have mixed opinions on the company’s future outlook, with some believing it will struggle to remain competitive and rebound from the job cuts, while others are optimistic that Etsy will be able to find its footing in the e-commerce market. Investors should carefully consider the potential risks and rewards associated with investing in Etsy.

Factors such as its expanding customer base and focus on unique product offerings should be weighed against the risks of decreased profitability due to increased competition and operational challenges associated with job reductions. Ultimately, investors should do their own research and decide if Etsy’s stock is a good fit for their portfolios.