Etsy shares expected to drop further amid negative consumer sentiment on economy

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Etsy Intrinsic Value – Etsy ($NASDAQ:ETSY) is an online marketplace that specializes in selling handmade or vintage items and supplies. Shares of Etsy have been under pressure recently amid negative sentiment on the future of the U.S. economy.

Evercore ISI issued a near-term tactical underperform call on Etsy, expecting that shares will drop further. Given all of these factors, Khajuria expects Etsy’s shares to continue to underperform in the near term.

Price History

So far this year, the stock has been on the rise again, reaching a high of $125 in June before falling back to its current level of around $120. The main reason for the volatility has been concerns about the company’s business model. Etsy is an online marketplace for handmade and vintage goods, and many investors have been worried that it will struggle to compete with larger e-commerce players like Amazon and eBay. These concerns were magnified in recent months as the U.S. economy showed signs of slowing down. Consumer confidence has been waning and there are concerns that a recession could be on the horizon.

In this environment, it’s not surprising that Etsy’s stock has come under pressure. The company is expected to report its second-quarter earnings on Wednesday, and analysts are expecting a decline in revenue and profit. Etsy shares are down 4.5% from their prior closing price of $125.3.

VI Analysis – Etsy Intrinsic Value Calculator

Etsy‘s fundamentals reflect its long term potential, and the intrinsic value of its shares is around $176.6, calculated by the VI Line app. The company is currently undervalued by 32% and is trading at $119.7 per share.

VI 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 is a publicly-traded company that operates an online marketplace focused on handmade and vintage items, as well as art and craft supplies. The company has been negatively impacted by several headwinds in recent years, including slowing growth, increased competition, and challenges with its payment platform. Despite these challenges, Etsy remains a popular e-commerce platform, particularly among small businesses and creative entrepreneurs. The company has strong brand recognition and a loyal customer base.

Investors considering Etsy as a potential investment should be aware of the risks involved. The stock is subject to volatile swings and could be impacted by any number of factors, including changes in consumer spending, shifting tastes, and the competitive landscape.