2024-04-09 15:05:20 ET
Summary
- Etsy's stock price has reversed its recent rally and is now trading at a relatively low valuation compared to its historical norm and other growth stocks.
- The company's supply trends remain strong, with an expected increase in sellers on the platform, while traditional retailers face negative headwinds.
- Etsy has a solid balance sheet and strong cash flow and is aggressively buying back its shares, improving shareholder value.
- Views that the firm will fail appear unsupported due to its healthy balance sheet and cash-flow margins.
- The ongoing decline in full-time jobs could benefit Etsy's long-term growth as more people look to it for supplementary income.
I covered Etsy ( ETSY ) six months ago with a neutral outlook . At that time, I believed the stock was likely oversold after tumbling 80%, having a far superior "P/E" valuation than in the past. I believe ETSY was trading in a clear bubble pattern from 2020 to 2022 as investors overestimated its growth rate based on the temporary impact of COVID lockdowns, encouraging more people to start businesses on the platform....
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For further details see:
Etsy: Covert Recessionary Hedge As People Look For Secondary Income (Rating Upgrade)