Here's Why Etsy Stock Popped This Morning
Shares of handmade goods e-commerce platform (NASDAQ: ETSY) popped on Thursday after the company announced that Marc Steinberg is joining the board of directors on Feb. 5. Steinberg is a partner with activist investor fund Elliott Investment Management and serves on multiple boards of directors, including the board for publicly traded company Pinterest. As of 10 a.m. ET, Etsy stock was up about 10%.
Activist investors often force their way onto a company's board by buying a stake in the company, believing big changes need to be made to unlock the company's full value. In this case, Elliott Management has made a "sizable" investment in Etsy stock. And according to CNBC's sources, it may amount to a 13% stake.
In this instance, Steinberg's appointment seems to be on the friendlier side. Etsy CEO Josh Silverman cited Steinberg's "unique and valuable experience" as reason to be excited about the move. And Steinberg said he's joining the company because of his belief that "there is an opportunity for significant value creation."
Source Fool.com
