
Etsy (ETSY) Stock Forecast & Price Target
Etsy (ETSY) Analyst Ratings
Bulls say
Etsy operates a leading e-commerce marketplace, generating $12.5 billion in gross merchandise volume for 2024 while connecting approximately 95 million buyers to 8 million sellers across its platforms, including Etsy and Depop. The company has shown resilience in its gifting segment, which grew to account for 29% of total gross merchandise sales, and overall growth metrics indicate a positive trajectory with annual increases of 21% in the third quarter and 22% in the fourth quarter. Additionally, Etsy's asset-light business model is expected to drive revenue growth faster than gross merchandise sales through enhanced advertising services and operational improvements, suggesting a favorable outlook for the company's financial performance.
Bears say
Etsy's outlook has deteriorated, with EBITDA estimates reduced by approximately 10% due to decreased gross merchandise sales (GMS) and anticipated lower margins as the company plans increased investments in product development without expected sales and marketing leverage for 2025. The firm is also guiding for a year-over-year GMS decline in the first quarter that aligns with fourth-quarter results, predominantly affected by persistent consumer discretionary spending pressures and a focus on long-term initiatives over immediate growth. Additionally, the company's revenue expectations for the fourth quarter reflect a downward adjustment based on external data indicating a decline in marketplace revenue, indicating challenges in consumer order frequency and average order value during a traditionally strong holiday season.
This aggregate rating is based on analysts' research of Etsy and is not a guaranteed prediction by Public.com or investment advice.
Etsy (ETSY) Analyst Forecast & Price Prediction
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