Etsy's Stellar Growth Isn't Enough to Please Investors
Sometimes, growth stocks move sharply on earnings news, especially if the report is surprisingly above or below expectations. Etsy (NASDAQ: ETSY) stock, for example, traded down about 16% after releasing its third-quarter earnings report on Oct. 30. The company posted stellar revenue growth, but investments in growth initiatives hurt the bottom line.
The stock could be pulling back because of valuation concerns, but there doesn't appear to be anything in the results to suggest Etsy is underperforming. To the contrary, it appears well positioned for continued growth heading into 2020.
Image source: Etsy.
Source Fool.com
