#5 - Etsy (NASDAQ:ETSY)
If you’re looking for a short-term play on the social distancing period, Etsy (NASDAQ:ETSY) is a good place to start. Every now and then, you get the right stock for the right time. Companies like Hobby Lobby and Michael’s are geared to the crafting community. So is Etsy. But whereas these other stores have a brick-and-mortar presence, Etsy is totally e-commerce. It’s made for a time like this.
The stock is on a tear. Since closing at around $31 per share on March 20, the stock has rallied nearly 40% to virtually wipe out any year-to-date losses. As the nation and the world stays indoors over the next few weeks or longer, Etsy will have a window in which to generate revenue.
However, I don’t see Etsy as a long-term play. When consumers are free to move out and about, I expect a stock like ETSY will decline on lower revenue. After all, the one thing people won’t want to do is more craft projects. And since reaching its all-time high at just over $70 per share in March of 2019, the stock is down over 40%. No amount of revenue is going to close that gap.
About Etsy
Etsy, Inc, together with its subsidiaries, operates two-sided online marketplaces that connect buyers and sellers in the United States, the United Kingdom, Germany, Canada, Australia, and France. Its primary marketplace is Etsy.com that connects artisans and entrepreneurs with various consumers. The company also offers Reverb, a musical instrument marketplace; Depop, a fashion resale marketplace; and Elo7, a Brazil-based marketplace for handmade and unique items.
Read More - Current Price
- $52.30
- Consensus Rating
- Hold
- Ratings Breakdown
- 8 Buy Ratings, 12 Hold Ratings, 4 Sell Ratings.
- Consensus Price Target
- $64.87 (24.0% Upside)
