Is It Time to Sell Etsy Stock?
The Federal Reserve's ongoing moves to raise interest rates in order to curb rising prices across the economy have no doubt had a major negative impact on equity markets. Consequently, some of the top growth stocks of the past several years have been crushed this year, as investors sour on high-multiple stocks in favor of safer companies they believe will do well in a potentially difficult economic environment.
So it was surprising to see that the market seemed to love Etsy's (NASDAQ: ETSY) second-quarter results, as the stock soared over 26% in the three weeks following the announcement. But the online marketplace's shares are still down 52% (as of this writing) in 2022. Is now the time to ditch the stock?
During the second quarter, Etsy's gross merchandise sales (GMS), the value of items sold on its various platforms, declined 0.4% year over year. But the company was still able to increase revenue 10.6% to $585 million. And due to higher employee head count, net income fell 25.6% compared with the prior-year period. Both the top and bottom lines exceeded Wall Street forecasts, which explains the stock's positive reaction following the news.
Source Fool.com
