Etsy Might Be a Magnificent Growth Stock, but There's 1 Red Flag

Thanks to a massive boost from the coronavirus pandemic, (NASDAQ: ETSY) saw its growth absolutely surge a couple of years ago. Online shopping enjoyed huge demand from consumers. And as a popular marketplace for unique and handcrafted goods, Etsy benefited tremendously.

The financial gains have slowed due to macro headwinds, though. This could still be a magnificent growth stock. However, there's one major red flag that investors can't ignore.

My stance on Etsy as a solid investment opportunity hasn't changed. One of the most compelling reasons is its differentiated product offering. A survey revealed that 87% of Etsy shoppers found items on the site that they couldn't find anywhere else. This is a remarkable competitive advantage. And it protects Etsy from the likes of Amazon, which focuses more on speed and convenience.

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Source Fool.com