ETSY - Etsy: Moat Remains Intact At A Reasonable Price
2024-02-01 02:43:10 ET
Summary
- Etsy's GMs has been declining since Q2 2022 due to the contraction of disposable income and competition from Chinese e-commerce players.
- Etsy's competitive edge remains intact, but impressive growth is unlikely.
- Etsy is reasonably priced at around its intrinsic value of $72 per share.
Investment Thesis
While Etsy (ETSY) was one of the biggest beneficiaries of macroeconomics during the pandemic, it has become the biggest victim of adverse macroeconomics. Since Q2 of 2021 , Etsy's GMS has been staggering due to the shift and contraction of disposable income. There is no signal that Etsy's GMS will turn around....
Etsy: Moat Remains Intact At A Reasonable Price