economy
February 25, 2026
Analysts see a turnaround for this unique e-commerce play after a unit sale and strong earnings
This is "one of the top five most visited websites, more than a lot of household names," one analyst said.
TL;DR
- Etsy agreed to sell Depop to eBay for $1.2 billion, sending shares up 9.3% the next day.
- Analysts view the sale and strong fundamentals positively, highlighting Etsy as a top-visited website with significant potential.
- Fourth-quarter earnings per share exceeded estimates, and core Etsy saw a slight return to gross merchandise sales growth.
- Barclays upgraded Etsy to overweight, citing improving first-time buyer rates and the Depop sale's strategic benefits.
- The Depop sale is expected to allow Etsy to reallocate funds to its core operations and accelerate share buybacks.
- Etsy trades at a lower forward multiple than the S&P 500, suggesting it may be undervalued.
- Future challenges include the impact of AI on e-commerce and Etsy's advertising revenue streams.
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