Why Etsy Stock Tumbled Today
This is the week that Etsy (NASDAQ: ETSY) will drop its latest earnings release -- specifically, on Wednesday after market hours -- and judging by Monday's action, investors aren't filled with confidence about it. The company's shares fell by over 4% on the day, a notably deeper plunge than the 0.8% decline of the S&P 500 index.
That lack of confidence broadly mirrors the outlook of analysts tracking Etsy stock. While they are a mix of bears and bulls, on average, they are forecasting that the company's generally accepted accounting principles (GAAP) per-share net profit will land at $0.37 in the third quarter. That's well down from the $0.62 it posted in the same quarter of 2021.
On the other hand, revenue is expected to come in higher, at more than $564 million. Yet if achieved, that would represent growth of only 6%. By contrast, in Etsy's second quarter, the company managed to boost its revenue by nearly 11% on a year-over-year basis.
Source Fool.com
