Etsy, Inc.

Pinterest beat second-quarter estimates but warned of slower growth ahead, while Etsy also topped expectations and then cut 220 jobs, about 12% of its staff. Pinterest posted adjusted earnings of 43 cents a share versus the 36 cents analysts expected, with revenue of $1.18 billion against a $1.15 billion estimate, but guided third-quarter revenue to $1.19 billion to $1.21 billion, implying growth of just 13% to 15%, down from 18%. CEO Bill Ready said companies ignoring open-source AI models are wasting shareholder money, and CFO Julia Donnelly cited the non-repeating World Cup ad boost and European regulatory pressure on Asian retailers as reasons for the slowdown. Etsy reported revenue of $668.3 million, above the roughly $649 million expected, raised its full-year gross merchandise sales outlook to mid-single-digit growth, and announced a $2 billion buyback, but posted a $46.7 million net loss and a 0.4% drop in active buyers.

Bank of America upgraded Etsy to Buy and raised its price target to $105 from $88, sending shares higher Thursday. The new target implies roughly 30% upside from Wednesday's close, with analyst Michael McGovern arguing recent growth is becoming more structural than temporary. BofA raised its fiscal 2027 gross merchandise sales growth estimate to 4.5% from 3.0%, and now expects EBITDA of $912 million, above the Street's $899 million estimate, with non-GAAP net income of $676 million versus consensus of $652 million. The bank also sees the sale of Depop giving Etsy roughly $1 billion of additional capital-return flexibility.

U.S. stock futures were little changed on Thursday as investors assessed a fresh batch of corporate earnings and analyst actions. CrowdStrike shares fell 2.8% in premarket trading after Bloomberg reported that the cybersecurity company's chief technology officer is departing to launch an artificial intelligence-focused cybersecurity fund. Advance Auto Parts stock plunged 15.9% after its second-quarter results revealed a significant difference between headline earnings and underlying performance, with about $0.31 of the reported $1.03 adjusted diluted earnings per share coming from one-time tariff refunds. Deere shares jumped 5.1% after the agricultural and construction equipment maker delivered a stronger-than-expected fiscal third quarter, with diluted earnings per share of $5.10 and net sales of about $11 billion. Etsy gained 3.9% in premarket trading after BofA Securities upgraded the online marketplace to Buy from Neutral and raised its price target to $105 from $88. Ultragenyx surged 11.1% after the U.S. Food and Drug Administration granted accelerated approval to GENGLYCOS, also known as DTX401, a gene therapy for glycogen storage disease type Ia in patients aged eight and older. Moderna shares fell 13% in premarket trading, retreating after more than doubling in the previous session following the company's major cancer-vaccine trial announcement with Merck. Wolfspeed plunged 10.5% after the semiconductor company reported a sharply wider-than-expected fiscal fourth-quarter loss, with an adjusted loss of $2.26 per share and revenue of $149.6 million. Webull rose 13.8% after the digital brokerage reported its strongest quarterly results since going public, with second-quarter revenue of $198.8 million and adjusted earnings of $0.05 per share.

Ulta Beauty and Etsy are seeing AI-referred shoppers convert at roughly twice the rate of traditional traffic, according to a Reuters report citing Adobe Analytics data showing 41% of U.S. consumers used generative AI for online shopping in June. Ulta said visitors arriving through Gemini and ChatGPT showed about double the conversion and purchase intent, while Etsy said shoppers may discover products through ChatGPT but generally return to Etsy to transact. OpenAI ended its standalone Instant Checkout tool in March and shifted toward product discovery followed by merchant-owned checkout, leaving retailers in control of the transaction. Ulta's loyalty program, with more than 46 million members generating about 95% of U.S. sales, gives it a stronger defense against AI platforms capturing the customer relationship, while Etsy retains checkout and seller access but faces risk if chatbots replace marketplace browsing and weaken its on-site advertising. The key question is whether retailers can convert AI-generated transactions into direct customer relationships as Google, Amazon and other platforms move closer to the transaction.

Etsy reported second-quarter 2026 revenue that exceeded expectations, announced job cuts, sold its Depop subsidiary to eBay, and authorized a new US$2 billion share repurchase program. The stock has risen 38.8% year to date, with a one-year total shareholder return of 19.5%, though the five-year return remains materially lower. Etsy closed at $79.48, slightly above a widely followed fair value estimate of $76.33, while a Simply Wall St discounted cash flow model suggests a fair value of $156.94 per share. The company faces ongoing pressure from higher marketing spend and softer buyer metrics that could challenge growth and margin assumptions.

Etsy has completed the sale of its fashion resale marketplace Depop to eBay for approximately $1.4 billion in cash. The purchase price was $1.2 billion plus $200 million of net purchase price adjustments and interest, with net cash proceeds subject to further post-closing adjustments. Etsy plans to use the proceeds for general corporate purposes, including accelerating its share repurchase program as outlined in its April 29th Shareholder Letter. CEO Kruti Patel Goyal said the divestiture allows Etsy to focus exclusively on driving sustainable long-term growth for the Etsy marketplace.

Etsy shares climbed 5.9% after the company expanded its artificial intelligence push by embedding conversational agents across buyer discovery, seller tools, and off-site commerce, supported by partnerships with OpenAI, Microsoft, and Google. The move positions Etsy to integrate agent-driven shopping directly into its marketplace, potentially reshaping how high-intent buyers and sellers interact on the platform. The new conversational AI rollout could serve as a near-term catalyst if it helps convert high-intent shoppers and support sellers, though its impact on reversing gross merchandise sales declines and justifying current marketing spend levels remains uncertain. Etsy's ongoing share repurchase program under the $1,000.0 million authorization has taken out over 17.0 million shares, and this capital return sits alongside AI and loyalty spending as a key use of cash. The company's narrative projects $3.1 billion in revenue and $506.9 million in earnings by 2029, requiring 1.8% yearly revenue growth and about a $204 million earnings increase from $302.7 million today.

The UK Competition and Markets Authority has cleared eBay's acquisition of Depop from Etsy. The approval allows Etsy to proceed with the divestment of the fashion resale app, narrowing its focus back to its core marketplace for unique and handcrafted goods. The decision signals a shift in Etsy's business mix and raises questions about how the company will deploy the sale proceeds, including potential reinvestment, debt reduction, or shareholder returns. Etsy's stock recently showed a 30-day return of 15.5% amid the Depop clearance news.

A new analysis compares Etsy and Wayfair to determine which consumer stock is a better buy in 2026. Etsy, which connects roughly 5.6 million sellers with more than 86.5 million active buyers, reported fiscal 2025 revenue of nearly $2.9 billion and net income of roughly $163.0 million, yielding a net margin of about 5.7%. Wayfair, operating a network of nearly 20,000 suppliers and 12 physical stores, generated approximately $12.5 billion in revenue but posted a net loss of nearly $313.0 million, resulting in a net margin of approximately -2.5%. On valuation, Etsy trades at a forward price-to-earnings ratio of 23.3 times while Wayfair carries a lower price-to-sales ratio of 0.9 times. The article suggests Wayfair may suit aggressive investors betting on a housing recovery, while Etsy could appeal to conservative investors due to its steady cash flow and asset-light model.

Walmart's partnership with Google Gemini has turned AI-powered agentic shopping into a live catalyst, with global e-commerce growing 26% and marketplace sales up nearly 50% in the first quarter of fiscal 2027. Shopify, which powers the merchant layer for agent transactions, posted 34% revenue growth and $100 billion in gross merchandise volume, though its shares are down 24% year to date. Etsy has integrated with OpenAI's shopping framework and reported sequential active buyer growth for the first time in two years, signaling that AI agents are already rerouting real e-commerce traffic. Symbotic, a warehouse automation firm with a $22.7 billion backlog anchored by Walmart, saw revenue rise 23% but its stock is down 24% year to date. FedEx, the parcel backbone for agentic orders, delivered its fourth consecutive earnings beat with revenue of $25 billion and shares up 68% year to date.

Etsy's marketplace gross merchandise sales rose 5.5% year over year to $2.5 billion in the first quarter of 2026, with the growth rate improving 540 basis points from the fourth quarter. Active buyers posted sequential growth for the first time in two years, new buyers and active sellers increased year over year, and GMS per active buyer rose for the first time since late 2022 to $122 on a trailing 12-month basis. Management reiterated its expectation for year-over-year marketplace GMS growth in every quarter of 2026 and forecast full-year growth in the low single digits, guiding second-quarter marketplace GMS to between $2.48 billion and $2.53 billion, implying 3% to 5% year-over-year growth. The company said progress in product development and marketing is translating into improvements across marketplace fundamentals, while foreign exchange tailwinds and a softer prior-year comparison also supported the performance. Etsy's mobile app GMS increased 11.2% year over year and accounted for roughly 47% of marketplace GMS.

Shares of Etsy, ACV Auctions, and EverQuote surged in afternoon trading after record Prime Day sales and falling Treasury yields boosted sentiment for digital platforms. U.S. online sales hit $8.3 billion, up 5.3% year-over-year, signaling robust consumer demand that supports advertising spending on platforms like Google and Meta. The 10-year Treasury yield fell below 4.5%, lowering the discount rate on future cash flows and lifting valuations for consumer internet companies. Etsy jumped 4.6%, ACV Auctions rose 2.7%, and EverQuote gained 4.5%, with Etsy reaching a new 52-week high of $78.22 per share.

A new report from the U.S. Congress Joint Economic Committee Minority warns that the lack of affordable child care could cost the U.S. economy as much as $329 billion over the next decade. The report finds parents often wait up to two years for a slot while care averages $13,184 annually per child, forcing workforce exits, reduced hours, and missed work that increase turnover and lower productivity. It highlights three underused federal tax incentives—the 45F employer-provided child care tax credit, the Dependent Care Assistance Program, and the Child and Dependent Care Tax Credit—noting that only 13% of private-sector workers receive child care benefits and less than 1% of corporate returns claimed the 45F credit in 2016. A bipartisan bill led by Senator Maggie Hassan and Senator Dan Sullivan would create an IRS liaison to boost awareness. The committee says every dollar invested in employer-sponsored child care returns an average of $2.90 in business benefits, citing examples such as Patagonia’s 100% return-to-work rate for new mothers and Etsy where 82% of employees say child care benefits influenced their employer choice.

Consumer internet stocks reported a satisfactory first quarter, with aggregate revenues beating analyst consensus estimates by 1.2% while next-quarter revenue guidance came in 0.6% below expectations. Airbnb posted revenue of $2.68 billion, up 17.9% year on year and exceeding estimates by 2.2%, alongside an impressive EBITDA beat and above-consensus revenue guidance. Sea delivered the strongest performance among peers, with revenue of $7.33 billion, up 43.2% year on year and topping estimates by 10.1%, driven by solid user growth to 72.6 million. Shutterstock was the weakest, with revenue of $199.2 million, down 17.9% year on year and missing estimates by 10.1%, accompanied by a significant EBITDA miss. Revolve reported revenue of $342.9 million, up 15.6% year on year and beating estimates by 4.2%, while Etsy posted revenue of $631.3 million, up 3.1% year on year and exceeding estimates by 2.4%. On average, share prices across the 46 tracked consumer internet stocks have declined 3.2% since the latest earnings results.

PayPal Ads announced that campaigns from Adorama, Best Buy, and Etsy delivered measurable bottom-line growth using its cross-merchant Transaction Graph and Storefront Ads. Adorama saw a 7.3x incremental return on ad spend and a 14.9% incremental transaction lift, with 56% of purchasers being new customers. Best Buy achieved a 6.25x return on ad spend and dwell time 22% above platform benchmarks. Etsy is testing PayPal's Conversion API to close the loop on campaign data, becoming the first to integrate the full stack.