2023-05-22 06:42:01 ET
Bank of America provided an update on Etsy ( NASDAQ: ETSY ) on Monday after holding a virtual investor meeting with reps for the online retailer.
While Etsy ( ETSY ) did not provide new financial details, BofA said some of the positive pullouts from the meeting include the efforts improving the buyer experience and growth and enhancements to Etsy's ( ETSY ) full funnel marketing strategy to drive traffic including optimizing paid search, new brand marketing and pushing expansion in international markets. Of note, Etsy is also said to be highly focused on improvement in search through AI, which is called an area of strength for the company.
BofA said active seller trends are still a bright spot for Etsy with growth of 4% recorded in Q1. Etsy ( ETSY ) has also been able to entirely offset inflation headwinds by promotional tools.
Looking ahead, BofA thinks broader macroeconomic challenges could weigh on U.S. e-commerce trends and Etsy's ( ETSY ) GMS in the near-term, which keeps the firm's rating at Neutral. Howeever, Etsy's ( ETSY ) investments in search and optimization are seen potentially providing upside when the macro improves.
Shares of Etsy ( ETSY ) fell 0.10% in light premarket trading on Monday.
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Etsy is tipped by BofA to be beneficiary of AI integration