Why Etsy Stock Surged on Thursday
Shares of Etsy (NASDAQ: ETSY) were up 9.7% as of 1:52 p.m. ET on Thursday after the e-commerce company reported better-than-expected results for the second quarter.
Revenue grew 10.6% year over year to $585 million, while net profit dropped 25% due to increases in headcount relating to last year's acquisitions of Depop and Elo7. Its growth pace has decelerated from a year ago, but it was still better than investors feared amid the weakening economic backdrop.
Overall, the Q2 results might not seem to justify such a positive reaction by the market. Etsy's gross merchandise sales fell 0.4% year over year; its revenue growth was the result of a fee increase on marketplace transactions.
Source Fool.com
