Etsy Stock Is Soaring Following Big News. Here's What to Know Before Pouring In.
(NASDAQ: ETSY) is an e-commerce platform best known for its variety of handcrafted items. Last week the stock soared nearly 9% following some interesting news. Investment firm Elliott Management has reportedly acquired a 13% stake in Etsy. Moreover, one of the fund's partners, Marc Steinberg, joined Etsy's board of directors.
On the surface, this may seem like rather mundane news. However, Elliott Management is unique because it is known for its activist investing reputation. Let's dig into how this relationship could impact Etsy, and what it could spell for investors.
Activist investing can take many forms. Moreover, while activist investing can at times come across as jarring, it isn't exactly something new. Billionaire hedge fund manager Bill Ackman is widely regarded as one of the most influential activist investors today. Moreover, media and entertainment giant Walt Disney is currently going through its own rigmarole with activist investor Nelson Peltz.
Source Fool.com
