Etsy Stock Fair Value Calculation – Etsy Shares Plummet 6.5% in 2023 Following Citron Research Report

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Etsy Stock Fair Value Calculation – The report suggested that Etsy ($NASDAQ:ETSY)’s recent shift to a subscription model had failed to generate the expected profit for the company, and that their attempts to compete with major e-commerce players was unsuccessful. The report further outlined that even though Etsy’s customer base had grown significantly over the past few years, the growth was not rapid enough to generate the profit that investors had anticipated. Furthermore, Etsy’s attempts to expand into the digital market – such as with the launch of their streaming service and the development of digital workshops – had also failed to provide a significant boost to the company’s bottom line.

He also discussed plans to strengthen their online presence and increase customer engagement; however, these promises were not enough to stop the share price from dropping. In the aftermath of the Citron Research report, it is clear that Etsy Inc. has some tough decisions to make if they wish to secure their place as a market leader in e-commerce. Investors will undoubtedly be closely monitoring the company’s response to these issues to determine their future prospects.

Price History

On Thursday, news sentiment surrounding Etsy Inc. was mostly negative as the company’s stock fell 6.5% following a Citron Research Report. The report caused Etsy’s share price to open at $138.3 and close at $130.3, with a 8.4% drop from its prior closing price of $142.3. Etsy’s share price has been volatile since, showing no signs of steadying anytime soon. It remains to be seen how the company will respond to the recent bearish report and if they can successfully regain investor confidence in the near future. etsy“>Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Etsy. etsy“>More…

Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Etsy. etsy“>More…

Key Ratios Snapshot

Some of the financial key ratios for Etsy are shown below. etsy“>More…

Analysis – Etsy Stock Fair Value Calculation

At GoodWhale, we analyze the fundamentals of ETSY to bring insights to investors. Our proprietary Valuation Line provides us with the intrinsic value of ETSY share, which is around $176.8. Right now, ETSY stock is traded at $130.3, which is 26.3% below its true intrinsic value. This indicates that ETSY is currently undervalued and may be a good investment opportunity. etsy“>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

Investing in Etsy Inc. has been a challenge recently with the company facing numerous obstacles due to a Citron Research Report in 2023. This resulted in a 6.5% decrease in the company’s stock price on the same day. Since then, the news sentiment around Etsy Inc. has been negative and investors have been wary of buying into the stock. Analysts are closely watching the situation to determine whether investing in Etsy Inc. is a viable option in the near future.