It's been a tough year for e-commerce marketplace Etsy (NASDAQ: ETSY) , but the company is showing signs of its former high-growth-stock life again after its Q3 2022 earnings. Not only did Etsy top guidance during the summer and autumn, but it also provided a solid outlook for the busy end-of-year holiday shopping season. After a mid-teens percentage rally, shares are now down 54% with just two months left to go in 2022.
Zooming out to see the bigger picture, though, Etsy has been a wonderful investment for shareholders over the longer term. With the stock down in the dumps and Etsy indicating higher growth is on the way, is it time to buy?
Etsy's Q3 financials beat management's own expectations. Gross merchandise sold (GMS) was just over $3.0 billion in the third quarter ($2.8 billion to $3.0 billion forecast), and revenue was $594 million (as much as $575 million forecast). As for revenue, which increased nearly 12% year-over-year, Etsy could attribute the gain to an increase in its seller's fee from a 5% of a sale to 6.5% now.
For further details see:
Etsy Predicts a Strong Close to 2022: Is the Stock a Buy?