A huge rally since early 2023 has made it harder for investors to find obvious values in the stock market. That's especially true in the tech world. The Nasdaq Composite index is up 40% in the past year, after all, and many popular stocks have logged gains of double or triple that result.

(NASDAQ: ETSY) stock isn't one of these winners. The marketplace platform specialist sat out the recent rally, with shares down more than 30% in a year.

You don't usually see that level of underperformance unless there are some serious concerns about a company's fundamental strength. Yet there's also a good chance that investors are overreacting to short-term operating challenges, potentially setting up a strong rebound for the stock.

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Source Fool.com