Here's How Etsy Disappointed Investors Today

Shares of e-commerce marketplace (NASDAQ: ETSY) disappointed investors on Wednesday after it reported its financial results for the fourth quarter of 2024. The company is struggling to grow and retain its user base. And those concerns explain why Etsy stock was down 8% as of 1:50 p.m. ET.

Etsy owns a few e-commerce platforms. However, on its core Etsy platform, active buyers were down nearly 3% year over year to 89.6 million and average order value was down as well. This led to a nearly 9% drop in gross merchandise sales (GMS). The numbers could certainly be worse, but they're troubling nevertheless.

Etsy's Q4 revenue was still up 1% to $852 million because it improved its take rate, primarily with advertising. This contributed to a massive 56% improvement in net income, which came in at $130 million. So the report wasn't all bad.

Continue reading

Source Fool.com