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Etsy said Thursday it will no longer allow merchants to sell AI-generated recipes and patterns on its online marketplace, as part of a wider push to set firmer rules around the use of artificial intelligence on its platform.

In a blog post, Etsy said it's banning the sale of "functional guides" that are created using AI, including patterns, cooking recipes and instructions. The products are usually marketed as digital downloads, such as crochet or sewing patterns. Users then "put in effort to achieve a finished product," the company said.

Sellers will also be required to show an actual item made using the instructions, not an AI-generated or simulated result, "so buyers know what to expect," Etsy said.

Etsy said in a separate notice to sellers that it was making the changes as AI threatens to erode buyers' and sellers' trust in the platform.

"Today, many active buyers say they can't tell which items involve AI-generated content," the company wrote. "It's become a top-three barrier to shopping more often on Etsy. And you, our seller community, have told us you're concerned about your work appearing alongside items that use AI in misleading ways, and that it's becoming harder for buyers to recognize your role in creating your items."

As part of the move, Etsy said it's barring sellers from creating bot-generated listings without any human involvement. Sellers will also be required to include at least one unedited photo of the actual item they're selling.

Etsy told sellers it will continue to allow AI-generated art on its platform as long as merchants "play a clear role in what they create and are transparent about the process."

"Sellers must still disclose when an item is created using AI and cannot misrepresent AI-generated work as handmade or entirely their own creation," the company added.

Founded in 2005, Etsy is known for its mix of craft makers and artisan goods. The company has been leaning more into that reputation as it has battled an influx of generic, mass-produced items from resellers and increasing competition from Amazon and Walmart, as well as newer e-commerce upstarts like TikTok, Temu and Shein.

Misleading, AI-generated products or images present a new challenge for Etsy and other online marketplaces. Etsy has in recent years struggled to curb the proliferation of AI-made crochet patterns and other AI "slop." Amazon recently required sellers to label photos or videos that feature AI-generated people in response to recent legislation mandating the disclosure.

While Etsy has cracked down on the use of AI in listings, it's been infusing the technology throughout more of its website. The company has used AI to build more detailed profiles of shoppers and surface relevant products in search results.

Etsy has also partnered with OpenAI on shopping features, including launching a ChatGPT app for product discovery.

State of Alaska Department of Revenue reduced its holdings in shares of Etsy Inc (NYSE:ETSY – Free Report) by 48.6% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 18,680 shares of the company’s stock after selling 17,642 shares during the period. State of Alaska Department of Revenue’s holdings in Etsy were worth $1,335,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in the business. Blue Trust Inc. boosted its stake in shares of Etsy by 19.3% in the 1st quarter. Blue Trust Inc. now owns 1,238 shares of the company’s stock valued at $62,000 after purchasing an additional 200 shares in the last quarter. Lmcg Investments LLC raised its position in Etsy by 0.3% in the 1st quarter. Lmcg Investments LLC now owns 71,569 shares of the company’s stock worth $3,577,000 after purchasing an additional 249 shares during the period. NorthCrest Asset Manangement LLC raised its position in Etsy by 9.3% in the 3rd quarter. NorthCrest Asset Manangement LLC now owns 3,166 shares of the company’s stock worth $238,000 after purchasing an additional 269 shares during the period. Modera Wealth Management LLC raised its position in Etsy by 1.3% in the 1st quarter. Modera Wealth Management LLC now owns 23,889 shares of the company’s stock worth $1,194,000 after purchasing an additional 302 shares during the period. Finally, Compound Planning Inc. lifted its stake in Etsy by 8.6% in the first quarter. Compound Planning Inc. now owns 4,346 shares of the company’s stock worth $217,000 after purchasing an additional 346 shares during the last quarter. 99.53% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades Several analysts have issued reports on the stock. Canaccord Genuity Group set a $92.00 price target on shares of Etsy in a research report on Thursday, August 6th. Barclays lifted their price objective on Etsy from $82.00 to $94.00 and gave the stock an “overweight” rating in a report on Friday, August 7th. Seaport Research Partners upgraded Etsy to a “buy” rating in a report on Thursday, August 20th. UBS Group boosted their target price on Etsy from $74.00 to $86.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. Finally, Royal Bank Of Canada cut Etsy to a “sector perform” rating in a report on Thursday, August 20th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, eighteen have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $86.21.

Get Our Latest Stock Analysis on ETSY Etsy Stock Down 0.0% Shares of NYSE ETSY opened at $85.10 on Tuesday. Etsy Inc has a 52 week low of $44.00 and a 52 week high of $90.32. The firm’s fifty day moving average is $77.10 and its 200 day moving average is $72.37. The company has a market cap of $8.08 billion, a price-to-earnings ratio of 47.54, a PEG ratio of 2.13 and a beta of 1.86.

Etsy (NYSE:ETSY – Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported ($0.49) EPS for the quarter, missing analysts’ consensus estimates of $0.75 by ($1.24). The firm had revenue of $668.31 million for the quarter, compared to the consensus estimate of $646.10 million. Etsy had a net margin of 7.32% and a negative return on equity of 34.18%. The company’s quarterly revenue was down .7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.25 earnings per share. Equities research analysts anticipate that Etsy Inc will post 3.94 earnings per share for the current year.

Insider Transactions at Etsy In other news, Director Charles Ballard sold 4,500 shares of the stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $81.85, for a total transaction of $368,325.00. Following the completion of the sale, the director directly owned 4,239 shares in the company, valued at approximately $346,962.15. This represents a 51.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Richard Colburn, III sold 8,252 shares of the firm’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $82.09, for a total value of $677,406.68. Following the completion of the sale, the insider directly owned 6,503 shares in the company, valued at $533,831.27. The trade was a 55.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 133,251 shares of company stock valued at $10,966,499. Company insiders own 2.50% of the company’s stock.

Etsy Company Profile (Free Report)

Etsy, Inc operates an online marketplace that connects independent sellers with consumers seeking unique and creative goods. Its marketplace features products such as handmade items, personalized gifts, vintage merchandise, home décor, jewelry, clothing, craft supplies and other goods made, designed, selected or sourced by individual sellers and small businesses.

The company provides tools and services that support marketplace activity, including seller storefronts, search and discovery features, payment processing, advertising, shipping assistance and customer support.

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Unconfirmed takeover chatter is lifting online marketplace stocks, while the software side of e-commerce is barely moving. eBay (NASDAQ:EBAY | EBAY Price Prediction) stock is up 5% to $122.

Morgan Stanley just handed eBay a rare top-pick crown, crediting a format that has quietly turned the old auction site into something Wall Street is only beginning to price in. Shopify and Etsy caught a lift too, but the real…

Morgan Stanley (NYSE:MS | MS Price Prediction) named eBay (NASDAQ:EBAY) its top internet pick, saying that live streaming auctions have become a growth engine for the marketplace, and eBay stock is catching a bid. eBay shares are at $117.70, up 5% in midday trading. Heading into the note, eBay stock had gained 30% from the first trading day of 2026 through its most recent close.

Meanwhile, Shopify (NASDAQ:SHOP) stock is at $176.27, up 3%, a smaller gain than eBay stock’s advance. Additionally, Etsy (NASDAQ:ETSY) stock is at $77.93, up 2%, the smallest advance of the three. Both companies serve the same online shopping economy as eBay, though each makes its money in a different way.

Interestingly, online retail as a group is barely moving. The Amplify Online Retail ETF (NYSEARCA:IBUY) is at $68.97, up by just 0.2%. Across large caps, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is flat at $778.75.

Morgan Stanley Crowns eBay Its Top Internet Pick
Analyst Nathan Feather led the Morgan Stanley note, which raised the firm’s price target on eBay stock to $132 from $127. That note saying that live streaming auctions have changed how the platform trades. Feather described Western live shopping as a digital auction house for secondary and collectible goods, a format distinct from the influencer-led model common in Asia, and that structure raises the speed at which inventory turns over.

In the same note, Nathan Feather estimated that live commerce now drives more than 40% of eBay’s growth in gross merchandise volume (GMV), the total value of goods sold across the platform. Morgan Stanley also said operating profit expectations have likely bottomed after recent platform investments and acquisitions, including Depop. eBay closed its $1.4 billion purchase of the secondhand fashion app, which it acquired from Etsy, on July 30.

Live Auctions Set eBay Apart
On its Q2 2026 earnings call on August 5, eBay said GMV from eBay Live grew roughly 8x year over year and that it had recently moved the program to a self-service model to make seller onboarding easier. Chief executive Jamie Iannone also pointed to spillover into the core marketplace, stating, “When we look at buyers that start shopping in live, they’re spending 70% more than comparable buyers that are not shopping on live.”

Gains in Shopify stock and Etsy stock alongside a barely moving online retail fund point to an eBay-specific story with some read-across to its peers. eBay made up 2.4% of the ETF’s net assets as of June 30, with Etsy at 2.7% and Shopify at 0.8%, so gains in all three names carry limited weight inside the fund.

What to Watch Next
The next key question for eBay is whether live commerce volume shows up in the company’s own reported GMV. The company’s full-year outlook already lists eBay Live among the emerging growth vectors behind its GMV expansion. Shareholders can watch for whether eBay Live’s growth becomes visible enough in consolidated GMV to support the Morgan Stanley estimate.

Traders should watch for whether management details eBay Live at its next report; a vague disclosure would undercut the Morgan Stanley estimate. At 17x forward and 24x trailing earnings, eBay stock sits just below its 52-week high of $118.62, so investors sizing their positions should consider decline risk if live commerce slows.

Contact [email protected] for any questions or corrections.

Etsy Inc (NYSE:ETSY – Get Free Report)’s share price rose 5.5% during trading on Wednesday. The stock traded as high as $71.60 and last traded at $73.0580. 221,085 shares changed hands during mid-day trading, a decline of 93% from the average session volume of 3,240,676 shares. The stock had previously closed at $69.28.

Wall Street Analyst Weigh In A number of equities analysts have recently commented on the stock. Sanford C. Bernstein raised shares of Etsy from a “hold” rating to a “strong-buy” rating in a report on Friday, September 11th. UBS Group raised their target price on Etsy from $74.00 to $86.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. Citigroup raised their target price on Etsy from $60.00 to $92.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. Piper Sandler boosted their price target on Etsy from $70.00 to $80.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. Finally, Weiss Ratings cut Etsy from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, August 6th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $86.21.

View Our Latest Research Report on Etsy

Etsy Price Performance The company has a market capitalization of $6.90 billion, a P/E ratio of 40.64, a P/E/G ratio of 1.78 and a beta of 1.81. The stock’s 50 day simple moving average is $78.46 and its two-hundred day simple moving average is $70.09. Etsy (NYSE:ETSY – Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported ($0.49) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.75 by ($1.24). Etsy had a negative return on equity of 34.18% and a net margin of 7.32%.The company had revenue of $668.31 million for the quarter, compared to analyst estimates of $646.10 million. During the same quarter in the previous year, the company posted $0.25 earnings per share. Etsy’s revenue for the quarter was down .7% on a year-over-year basis. As a group, equities research analysts expect that Etsy Inc will post 3.94 earnings per share for the current year.

Insider Transactions at Etsy In other Etsy news, Director Frederick R. Wilson sold 20,000 shares of the company’s stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $81.86, for a total transaction of $1,637,200.00. Following the completion of the sale, the director owned 401,329 shares in the company, valued at approximately $32,852,791.94. The trade was a 4.75% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Merilee Buckley sold 405 shares of the stock in a transaction on Monday, August 17th. The shares were sold at an average price of $79.50, for a total value of $32,197.50. Following the completion of the transaction, the chief accounting officer directly owned 167 shares in the company, valued at approximately $13,276.50. This trade represents a 70.80% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 158,745 shares of company stock valued at $12,979,866. 2.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows Several hedge funds and other institutional investors have recently bought and sold shares of ETSY. Global Retirement Partners LLC acquired a new stake in Etsy during the 2nd quarter worth $34,000. EFG International AG acquired a new position in shares of Etsy in the second quarter valued at approximately $45,000. Blue Trust Inc. boosted its holdings in shares of Etsy by 19.3% in the first quarter. Blue Trust Inc. now owns 1,238 shares of the company’s stock valued at $62,000 after buying an additional 200 shares during the period. Eurizon Capital SGR S.p.A. bought a new stake in shares of Etsy during the fourth quarter worth $79,000. Finally, CoreCap Advisors LLC increased its position in shares of Etsy by 2,379.1% during the second quarter. CoreCap Advisors LLC now owns 1,066 shares of the company’s stock worth $80,000 after acquiring an additional 1,023 shares in the last quarter. Institutional investors own 99.53% of the company’s stock.

Etsy Company Profile (Get Free Report)

Etsy, Inc operates a global online marketplace focused on unique and creative goods. Its platform connects buyers with independent sellers offering handmade products, vintage items, craft supplies, personalized merchandise, home décor, jewelry, clothing, and other specialty goods.

The company generates revenue primarily through marketplace services, including seller listing and transaction fees, payment processing, advertising, and other seller-focused services. Etsy also provides tools intended to help independent merchants manage their shops, market products, process orders, and reach customers.

Founded in 2005 and headquartered in Brooklyn, New York, Etsy serves buyers and sellers in numerous countries.

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The online marketplace is using detailed shopper profiles to know its customers better.

BTIG upgraded Esty Inc. (ETSY) to buy from neutral after the stock recently traded down from its 52-week high. Rick Ducat highlights bearish and bullish situations he sees in the stock chart and touches on key levels you'll want to watch.

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Etsy (ETSY - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Etsy is a member of the Retail-Wholesale sector. This group includes 190 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Etsy is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for ETSY's full-year earnings has moved 3.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that ETSY has returned about 32.5% since the start of the calendar year. In comparison, Retail-Wholesale companies have returned an average of -3.7%. This means that Etsy is outperforming the sector as a whole this year.

One other Retail-Wholesale stock that has outperformed the sector so far this year is El Pollo Loco Holdings (LOCO - Free Report) . The stock is up 38.9% year-to-date.

The consensus estimate for El Pollo Loco Holdings' current year EPS has increased 3.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Etsy is a member of the Internet - Commerce industry, which includes 35 individual companies and currently sits at #165 in the Zacks Industry Rank. Stocks in this group have lost about 1.1% so far this year, so ETSY is performing better this group in terms of year-to-date returns.

On the other hand, El Pollo Loco Holdings belongs to the Retail - Restaurants industry. This 36-stock industry is currently ranked #163. The industry has moved -10.6% year to date.

Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to Etsy and El Pollo Loco Holdings as they could maintain their solid performance.

California State Teachers Retirement System increased its stake in shares of Etsy Inc (NYSE:ETSY – Free Report) by 7,217.3% in the 2nd quarter, according to its most recent 13F filing with the SEC. The firm owned 7,561,851 shares of the company’s stock after buying an additional 7,458,509 shares during the period. California State Teachers Retirement System owned 7.97% of Etsy worth $569,634,000 as of its most recent filing with the SEC.

Several other large investors have also recently bought and sold shares of the stock. Global Retirement Partners LLC bought a new position in Etsy during the 2nd quarter worth $34,000. EFG International AG bought a new stake in shares of Etsy during the 2nd quarter valued at $45,000. Blue Trust Inc. lifted its position in shares of Etsy by 19.3% during the 1st quarter. Blue Trust Inc. now owns 1,238 shares of the company’s stock valued at $62,000 after acquiring an additional 200 shares during the period. Eurizon Capital SGR S.p.A. acquired a new stake in shares of Etsy during the 4th quarter worth $79,000. Finally, CoreCap Advisors LLC grew its holdings in shares of Etsy by 2,379.1% during the 2nd quarter. CoreCap Advisors LLC now owns 1,066 shares of the company’s stock worth $80,000 after purchasing an additional 1,023 shares in the last quarter. 99.53% of the stock is owned by institutional investors.

Etsy Price Performance NYSE ETSY opened at $74.51 on Tuesday. The stock has a market capitalization of $7.07 billion, a price-to-earnings ratio of 41.63, a PEG ratio of 1.82 and a beta of 1.81. Etsy Inc has a one year low of $44.00 and a one year high of $87.97. The business’s fifty day moving average is $80.93 and its 200-day moving average is $68.48.

Etsy (NYSE:ETSY – Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported ($0.49) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.75 by ($1.24). The firm had revenue of $668.31 million during the quarter, compared to the consensus estimate of $646.10 million. Etsy had a net margin of 7.32% and a negative return on equity of 34.18%. The business’s quarterly revenue was down .7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.25 earnings per share. Research analysts expect that Etsy Inc will post 3.94 EPS for the current fiscal year. Analyst Ratings Changes ETSY has been the topic of several recent analyst reports. The Goldman Sachs Group started coverage on shares of Etsy in a report on Monday, August 17th. They issued a “neutral” rating and a $89.00 target price on the stock. Wall Street Zen downgraded shares of Etsy from a “buy” rating to a “hold” rating in a report on Sunday, May 31st. Jefferies Financial Group upped their price objective on Etsy from $62.00 to $80.00 and gave the company a “hold” rating in a research note on Tuesday, July 14th. Royal Bank Of Canada cut Etsy to a “sector perform” rating in a research note on Thursday, August 20th. Finally, Wedbush started coverage on shares of Etsy in a research note on Thursday, July 16th. They set a “neutral” rating and a $80.00 target price for the company. Three research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $85.46.

View Our Latest Stock Analysis on ETSY

Insider Buying and Selling In related news, insider Josh Silverman sold 1,671 shares of the business’s stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $84.00, for a total value of $140,364.00. Following the completion of the sale, the insider owned 249,559 shares in the company, valued at $20,962,956. The trade was a 0.67% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Charles Ballard sold 4,500 shares of the company’s stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $81.85, for a total transaction of $368,325.00. Following the completion of the sale, the director directly owned 4,239 shares of the company’s stock, valued at $346,962.15. This trade represents a 51.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 368,538 shares of company stock valued at $29,085,228 in the last ninety days. 2.50% of the stock is owned by insiders.

About Etsy (Free Report)

Etsy, Inc operates a global online marketplace that connects buyers with independent sellers offering handmade, personalized and vintage goods, as well as craft supplies. Its marketplace includes products such as jewelry, clothing, home décor, art, gifts and party supplies.

The company provides tools and services that support commerce on its platform, including seller storefronts, search and discovery features, payment processing, advertising, shipping solutions and customer support. Etsy primarily serves individual entrepreneurs and small businesses seeking to reach consumers interested in distinctive and creatively designed products.

Founded in 2005 and headquartered in Brooklyn, New York, Etsy serves buyers and sellers in numerous countries.

Featured Articles Five stocks we like better than Etsy Analysts Are Punting Their Calls Into the Next Quarter After Adobe’s Mixed Earnings Institutional Money Is Pouring Into These 2 Altcoin ETFs The End of Big Tech Buybacks? Only One Hyperscaler Is Still Repurchasing Shares 3 Dividend Kings to Buy While They’re Still Beaten Down Want to see what other hedge funds are holding ETSY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Etsy Inc (NYSE:ETSY – Free Report).

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Silverman executed the sale of 13,367 shares between Sept. 1, 2026, and Sept.

Two of the biggest names in U.S. e-commerce platforms are sliding sharply midday Tuesday, while the sector's broader basket and Latin America's largest online marketplace hold up far better. The gap between them is doing most of the talking.

, /PRNewswire/ -- Etsy, Inc. (NYSE: ETSY), which operates the Etsy marketplace that connects millions of passionate and creative buyers and sellers around the world, today announced that its executives will participate in the Goldman Sachs Communacopia and Technology Conference in San Francisco. There will be a webcast fireside chat on September 9, 2026 at 10:50 a.m. PT, which investors can listen to on our investor relations website at investors.etsy.com.

About Etsy

Etsy, Inc. owns and operates the Etsy marketplace, the global destination for unique and creative goods, connecting millions of creative entrepreneurs with buyers around the world. In a time of increasing automation, it's our mission to keep human connection at the heart of commerce. That's why we built a place where creativity lives and thrives because it's powered by people. We help our community of sellers turn their ideas into successful businesses. Our platform connects them with millions of buyers looking for an alternative—something special with a human touch, for those moments in life that deserve imagination.

Etsy was founded in 2005 and is headquartered in Brooklyn, New York.

Etsy has used, and intends to continue using, its Investor Relations website and the Etsy News Blog (etsy.com/news) to disclose material non-public information and to comply with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website and the Etsy News Blog in addition to following our press releases, SEC filings, and public conference calls and webcasts.

Investor Relations Contact: 
[email protected]
Media Relations Contact:
[email protected]

SOURCE Etsy, Inc.

The e-commerce platforms are in different stages of their lifecycle.

Director Charles Andrew Ballard sold 4,500 shares of Etsy, Inc. (ETSY +0.78%) common stock on Aug. 26, 2026, according to a recent SEC Form 4 filing.

Transaction summaryMetricValueShares sold4,500Transaction value$368,325Post-transaction shares (directly held)4,239Post-transaction value$346,495.86Transaction value based on SEC Form 4 weighted average sale price ($81.85); post-transaction value based on Aug. 26, 2026, market close ($81.74).

Key questionsWhat is the scale of this transaction relative to the insider's total position?
The sale involved 4,500 shares, which effectively reduced the director's direct equity stake by 51% in this single filing.How does the current valuation compare to the price level of the trade?
The transaction was executed at $81.85 per share, and the stock was priced at $82.94 as of the Aug. 27, 2026, market close.What are the fundamental characteristics of Etsy?
Etsy operates online marketplaces linking independent merchants with global consumers, reporting trailing-twelve-month revenue of $2.9 billion and net income of $209.5 million.What is the resulting ownership concentration for the insider?
Following the completion of this sale, the director holds a direct stake of 4,239 shares, contributing to a total insider ownership level of 0.0045% for the company.Company OverviewMetricValueShare Price (as of market close 2026-08-27)$82.94Market Capitalization$7.7 billionRevenue (TTM)$2.9 billionNet Income (TTM)$209.5 millionCompany SnapshotEtsy operates global online marketplaces that connect independent merchants with consumers, offering unique and handcrafted items through its primary platform and secondhand apparel through its Depop division. It generates revenue from listing fees, transaction fees, payment processing fees, advertising services, and seller tools such as shipping label solutions.The company operates a multi-sided marketplace business model where independent sellers list and sell products to consumers, with Etsy capturing value through various fee structures, including listing fees, transaction commissions, payment processing charges, and premium advertising placements.Etsy's customer base comprises independent merchants and artisans seeking to reach a global audience of consumers interested in distinctive, handcrafted, and vintage goods, as well as fashion-conscious buyers utilizing the Depop platform for secondhand apparel transactions.Etsy, Inc. operates as a leading specialty retail marketplace platform with a market capitalization of $7.7 billion and TTM revenue of $2.9 billion, serving millions of independent sellers and consumers globally. The company's competitive differentiation centers on its curated focus on unique, handcrafted, and vintage items, complemented by the Depop acquisition, which extends its reach into the high-growth secondhand fashion segment. With a lean organizational structure of 2,375 employees and a diversified revenue model spanning marketplace fees and advertising services, Etsy demonstrates operational efficiency while maintaining strong profitability with TTM net income of $209.5 million.

What this transaction means for investorsBoth the size and the suddenness of Charles Ballard’s sale of Etsy shares may raise concerns among investors.

Admittedly, Form 4 filings do not usually tell why an insider sells. Nonetheless, this was not a preplanned sale, and it involved 51% of his holdings, which could lead some investors to question his confidence in the e-commerce company.

Investors should also consider the 45% gain in the stock price over the last year. Investors likely remember that Etsy stock was a highflier during the pandemic, and it experienced a massive sell-off in the 2022 bear market from which it never recovered.

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Moreover, the improving valuation of Etsy may further confuse investors. Although its P/E ratio is 49, a forward P/E ratio of 14 suggests the stock may be becoming inexpensive.

Revenue growth is in the single digits, indicating it lacks the catalyst needed to take the stock back to 2021 highs. Still, Ballard's sale could become a headwind for a stock that looks more like a buy given its falling valuation.

The business boomed during the pandemic, but growth has been more difficult ever since.

*Stock prices used were the afternoon prices of Aug. 20, 2026. The video was published on Aug.22, 2026.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Etsy. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.

We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.

The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.

Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.

When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.

Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.

Should You Consider Dollar General?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Dollar General (DG - Free Report) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $2.03 a share 14 days away from its upcoming earnings release on August 27, 2026.

By taking the percentage difference between the $2.03 Most Accurate Estimate and the $2 Zacks Consensus Estimate, Dollar General has an Earnings ESP of +1.61%. Investors should also know that DG is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

DG is just one of a large group of Retail and Wholesale stocks with a positive ESP figure. Etsy (ETSY - Free Report) is another qualifying stock you may want to consider.

Etsy, which is readying to report earnings on November 4, 2026, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $1.30 a share, and ETSY is 83 days out from its next earnings report.

The Zacks Consensus Estimate for Etsy is $1.27, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +2.52%.

DG and ETSY's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

Etsy (NYSE:ETSY – Get Free Report) and Ryohin Keikaku (OTCMKTS:RYKKY – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Earnings and Valuation This table compares Etsy and Ryohin Keikaku”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Etsy $2.88 billion 2.64 $162.98 million $1.79 44.83 Ryohin Keikaku $5.28 billion 2.96 $340.67 million $0.37 37.54 Ryohin Keikaku has higher revenue and earnings than Etsy. Ryohin Keikaku is trading at a lower price-to-earnings ratio than Etsy, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership 99.5% of Etsy shares are owned by institutional investors. 2.5% of Etsy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings This is a breakdown of current ratings and recommmendations for Etsy and Ryohin Keikaku, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Etsy 1 20 10 1 2.34 Ryohin Keikaku 0 2 0 0 2.00 Etsy currently has a consensus price target of $81.50, indicating a potential upside of 1.56%. Given Etsy’s stronger consensus rating and higher probable upside, research analysts clearly believe Etsy is more favorable than Ryohin Keikaku.

Profitability This table compares Etsy and Ryohin Keikaku’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Etsy 7.32% -34.18% 15.29% Ryohin Keikaku N/A N/A N/A Summary Etsy beats Ryohin Keikaku on 10 of the 14 factors compared between the two stocks.

About Etsy (Get Free Report)

Etsy, Inc. operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. 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. In addition, it offers various seller services, including Etsy Payments, a payment processing service; Etsy Ads, an advertising platform; and Shipping Labels, which allows sellers in the United States, Canada, the United Kingdom, Australia, and India to purchase discounted shipping labels. Further, the company provides various seller tools, including Shop Manager dashboard, a centralized hub for Etsy sellers to track orders, manage inventory, view metrics and statistics, and have conversations with their customers; and Sell on Etsy, an application to enable enhanced onboarding and video uploading. Additionally, it offers Etsy seller analytics pages that provides insights regarding traffic acquisition for their shops; Targeted Offers, a sales and promotions tool, and social media tool; and accounting and bookkeeping services. The company also provides educational resources comprising blog posts, video tutorials, Etsy Seller Handbook, Etsy.com online forums, and insights; Etsy Teams, a platform to build personal relationships with other Etsy sellers; and a Star Seller program. As of December 31, 2021, it connected a total of 7.5 million active sellers to 96.3 million active buyers; and had 120 million items for sale. The company was formerly known as Indieco, Inc changed its name to Etsy, Inc. in June 2006. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York.

About Ryohin Keikaku (Get Free Report)

Ryohin Keikaku Co., Ltd. develops, manufactures, distributes, and sells apparel, household goods, and food items in Japan and internationally. It offers apparel products, comprising shirts, denim jeans, socks, sneakers, innerwear, sweaters, camisoles, cardigans, windbreakers, duffle coats, skirts, trousers, pajamas for adults and kids, maternity stoles, backpacks, handbags, case trolleys, hats, mufflers, gloves, stockings, umbrellas, slippers, sandals, and Japanese working clothes; household goods products, including towels, mattresses, toning water, skin care products, make-up tools, fragrance oils, aroma diffusers, air purifiers, stationary, storage boxes and cases, kitchenware, cutleries, refrigerators, toasters, kettles, juicers, mixers, coffee makers, rice cookers, cabinets, shelves, chairs, benches, sofas, beds, duvets, blankets, refillable bottles, baskets, buckets, cleaning tools, laundry supplies, emergency kits, reusable masks, clocks, flashlights, radios, speakers, extension cords, travel adapters, toys, and bicycles and tricycles; and food products, including retort pouch foods, baumkuchen banana, frying-pan-ready meal kits, butter chicken curry, cookies, crackers, canned foods, potato chips, seasonings, jams, soups, frozen foods, doughnuts, ice cream, coffee beans, sake, sparkling water, and apple juice, as well as houses. The company designs, manufactures, and sells home furnishings, such as furniture, accessories, antiques, curtains, and rugs; engages in the production, consulting, and design of residential and commercial spaces; and develops and manages green/environmental businesses. In addition, it operates MUJI to GO shops that offer travel, commuting, business, study, and play products; Found MUJI; MUJI 500; Café&Meal; IDÉE stores; MUJI Campsite, which operates campgrounds; MUJI HOUSE; and muji.com, an online store. Ryohin Keikaku Co., Ltd. was incorporated in 1979 and is based in Tokyo, Japan.

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Etsy Partners With OpenAI—What It Means for Investors NowEtsy NYSE: ETSY reported accelerating second-quarter marketplace growth, raised its full-year 2026 outlook and authorized a new $2 billion share repurchase program, while also announcing a restructuring that will reduce its workforce by roughly 12%.

CEO Kruti Patel Goyal said the company’s strategy around discovery, matching, loyalty and human connection is improving marketplace fundamentals. Etsy marketplace gross merchandise sales, or GMS, totaled $2.6 billion in the second quarter, rising 7.5% from a year earlier. Revenue was $668 million, while adjusted EBITDA was $195 million, representing an adjusted EBITDA margin of 29.2%.

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Etsy Loses Its Meme Stock Shine – Is It Still a Buy?The company said its reported continuing-operations comparisons are affected by portfolio changes. Depop was sold to eBay on July 30 and is now classified as discontinued operations, while Reverb, sold in June 2025, remained part of continuing operations in the prior-year quarter. Etsy said financial results discussed on the call cover continuing operations or the Etsy marketplace only.

Buyer Activity and App Growth Etsy reported that active buyers increased by 350,000 sequentially to about 87 million, remaining roughly flat year over year. Gross buyer additions accelerated, and the company said its habitual and repeat buyer cohorts posted slight sequential growth for the first time since 2023.

Here’s Why Etsy Management Is Investing $1 Billion in BuybacksTrailing 12-month GMS per active buyer rose 2.8% year over year to $124. Patel Goyal said higher seller listing prices continued to contribute, but Etsy’s efforts to surface higher-quality inventory through search, recommendations and other experiences were increasingly supporting the increase.

Purchase frequency remained below prior-year levels, but the year-over-year decline moderated from the first quarter. Etsy also cited improving seller health, including year-over-year seller growth and stronger retention of sellers that were active in the prior year.

Mobile app performance remained a focal point. App GMS growth accelerated to 12.5% year over year, and the app accounted for about 47% of total GMS, according to Patel Goyal. Visits per monthly active user and orders per visit both increased from a year earlier.

Patel Goyal said Etsy has been making its app feed fresher by reducing the prevalence of recently viewed items and displaying more new and diverse listings. The company said this work has supported feed favoriting, listing views, new searches and new shopping missions.

Marketing, Personalization and Younger Buyers Management attributed growth partly to stronger marketing efficiency and product improvements. Patel Goyal said Etsy improved product listing ad performance through better segmentation and bidding strategies, while product updates such as real-time search personalization, more relevant recommendations and a fresher home feed were helping buyers find more suitable inventory.

The company said richer buyer profiles now cover more than 65 million buyers. Patel Goyal said those profiles become more detailed as users engage with Etsy and can be used across search, recommendations, app home feeds and marketing communications.

Etsy is also targeting younger consumers through social channels, creators and cultural partnerships. The company said investments in YouTube and TikTok drove a fivefold increase in visits from Millennial and Generation Z audiences in the first half of 2026. Etsy cited its Olivia Rodrigo partnership, which includes an in-person activation and exclusive merchandise collaboration, as an example of its approach.

CFO Lanny Baker said younger buyers currently have lower lifetime values than older cohorts but offer higher lifetime-value growth potential as they move through life and household changes. He added that Etsy expects its approach to younger consumers to work internationally as well as in domestic markets.

Profitability, Capital Returns and Restructuring Second-quarter revenue increased 6.2% year over year on a continuing-operations basis and 9.3% for the standalone Etsy marketplace. Marketplace revenue rose 8.4%, while services revenue increased 11.2%.

Take rate was 25.9%, up 130 basis points from a year earlier, including an approximately 80-basis-point benefit from the Reverb divestiture. Baker said Etsy marketplace take rate expanded primarily due to Etsy Ads, where machine learning has been used to improve relevance and seller budget pacing. Offsite ads also contributed as paid marketing shifted toward higher-monetizing channels.

Nearly half of the year-over-year increase in Etsy marketplace revenue flowed through to adjusted EBITDA, Baker said. The company held $1.3 billion in cash equivalents and investments as of June 30 and converted 81% of adjusted EBITDA into free cash flow during the quarter on a continuing-operations basis.

Etsy also received $1.4 billion in cash proceeds from the Depop sale. During the second quarter, it repurchased about $250 million of stock, roughly 70% more than in the first quarter, reducing its outstanding share count by approximately 3.9 million shares. The company had $578 million remaining under its prior authorization at quarter-end before announcing the new $2 billion authorization.

The restructuring will eliminate about 220 roles, primarily in product and engineering, leaving expected headcount of about 1,600. Etsy expects to incur roughly $35 million in charges, mostly for severance, benefits and related costs, and expects the plan to be substantially complete by the end of the third quarter.

Patel Goyal said the restructuring was not designed as a cost-cutting initiative, but rather to reduce organizational silos, create flatter teams and strengthen capabilities in areas including machine learning. Baker said Etsy intends to reinvest some savings in product, engineering, customer operations and research and development.

Updated Outlook For the third quarter, Etsy expects marketplace GMS of $2.53 billion to $2.58 billion, representing year-over-year growth of approximately 4% to 6%. The company expects a take rate of about 26% and an adjusted EBITDA margin between 28% and 30%.

For full-year 2026, Etsy now expects mid-single-digit GMS growth, reflecting stronger second-half momentum than it had previously anticipated. It expects its full-year take rate to be roughly in line with the first half and raised its adjusted EBITDA margin outlook to 29% to 30%.

Management said artificial intelligence remains central to its efforts to improve discovery, matching and personalization. Patel Goyal said traffic from agentic commerce experiences remains below 1% of Etsy’s total traffic, though it has shown higher intent and higher average order value. The company is also experimenting with AI-native shopping experiences, including its gifting assistant.

About Etsy (NYSE:ETSY)Etsy, Inc operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. 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. In addition, it offers various seller services, including Etsy Payments, a payment processing service; Etsy Ads, an advertising platform; and Shipping Labels, which allows sellers in the United States, Canada, the United Kingdom, Australia, and India to purchase discounted shipping labels.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways Etsy raised full-year GMS growth to mid-single digits and lifted adjusted EBITDA margin guidance to 29%-30%.Etsy will cut about 220 roles, or 12% of staff, to simplify teams and speed product execution.Search personalization, SEO and ad segmentation improved GMS growth, while app GMS rose 12.5% year over year. Etsy, Inc. (ETSY - Free Report) paired a stronger 2026 outlook with a restructuring aimed at faster product execution. Management said search, personalization and marketing are improving marketplace fundamentals and buyer engagement.

The call reinforced management’s preference for sustained GMS and revenue growth over structural margin expansion as Etsy redirects talent toward machine learning and customer operations.

ETSY Raises Full-Year Growth OutlookCFO Charles Baker guided third-quarter Etsy marketplace GMS to $2.53 billion to $2.58 billion, representing 4% to 6% year-over-year growth. He expects a take rate of about 26% and a 28% to 30% adjusted EBITDA margin.

Baker said full-year GMS growth is now expected in the mid-single-digit range, above the prior outlook. Full-year adjusted EBITDA margin guidance increased to 29% to 30% from 28% to 30%.

Second-quarter earnings were $1.34 per share, which surpassed the Zacks Consensus Estimate of $1.17. Revenues of $668.31 million topped the $649.7 million consensus mark.

Etsy Reshapes Product and EngineeringCEO Kruti Goyal said the restructuring will simplify product and engineering, reduce overlap and create flatter teams. The plan eliminates roughly 220 positions, or about 12% of the workforce.

Goyal said the goal is faster execution rather than cost-cutting. She wants talent aligned with discovery, matching and personalization, with deeper machine-learning expertise.

CFO Charles Baker expects about $35 million of restructuring charges and roughly 1,600 employees afterward. He said near-term savings are reflected in 2026 margin guidance, but the move is not intended to structurally lift margins.

ETSY Connects Marketing With PersonalizationA Raymond James analyst asked what drove stronger GMS growth. Goyal cited better product-listing-ad segmentation, continued SEO strength and more efficient acquisition feeding into an improved on-site experience.

Goyal said real-time search personalization, fresher recommendations and richer buyer profiles reinforce one another. Those profiles cover more than 65 million buyers, improving Etsy’s ability to tailor later visits.

Goyal highlighted the app as a proof point, with GMS up 12.5% year over year. Visits per monthly active user and orders per visit increased, while younger-buyer outreach expanded through social channels.

Etsy Buyer Trends Show Early StabilizationBaker said active buyers rose about 350,000 sequentially to roughly 87 million. Repeat and habitual buyers each posted slight sequential growth for the first time since 2023, while the decline in purchase frequency moderated.

A Morgan Stanley analyst pressed on average order value. Baker said higher seller listing prices have been durable, while search improvements increasingly surface higher-quality, higher-priced items that better match buyer intent.

Baker added that existing app users buying more drive most app GMS growth. He said younger buyers have lower near-term lifetime values but higher growth rates as they move through life stages.

ETSY Builds AI Around Better MatchingA Wedbush analyst asked how machine learning connects with agentic commerce. Goyal said Etsy’s largest AI opportunity remains on its marketplace, where AI can improve buyer understanding, inventory understanding and matching.

Goyal said agentic traffic remains below 1% of traffic but carries higher intent and higher average order value. Etsy is testing conversational shopping through its Gifting Assistant and partnering with major AI platforms.

A Wells Fargo analyst raised live commerce. Goyal said Etsy sees potential for sellers with strong maker stories but has no current launch plan. Baker said higher AI compute spending remains within planned infrastructure costs.

Etsy Keeps Growth Ahead of Margin ExpansionBaker said nearly half of year-over-year Etsy marketplace revenue growth flowed through to adjusted EBITDA in the second quarter, but one quarter does not establish a permanent incremental-margin model.

Baker said restructuring, marketing efficiency and capital allocation are meant to support durable growth. Etsy also authorized a new $2 billion repurchase program after receiving about $1.4 billion from the Depop sale.

ETSY’s Zacks Signals Stay MixedETSY carries a Zacks Rank #3 (Hold), with a Growth Score of A, Value and Momentum Scores of D and a VGM Score of B. Under the Zacks framework, Growth and VGM are favorable, while Value and Momentum are weaker. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Style Scores complement the Zacks Rank, with the strongest combinations pairing a Zacks Rank #1 or #2 (Buy) with A or B scores. ETSY lacks that top-rank combination, and its Zacks Rank can change as analyst estimates are revised after the just-reported results.

The provider of an online specialty retail marketplace reported a notable insider sale amid a 51% increase in its share price over the past 12 months.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of ETSY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Etsy ETSY is cutting roughly 12% of its workforce while authorizing an additional $2 billion share-repurchase program, pairing a major organizational reset with an aggressive return of capital. The moves could improve decision-making and earnings efficiency, but they also raise the stakes for management to revive buyer growth without weakening product development.

Etsy operates an online marketplace connecting independent sellers with shoppers seeking handmade, vintage and personalized goods. It generates revenue from transaction, payment-processing and listing fees, along with advertising, shipping labels and other seller services.

The restructuring will eliminate approximately 220 positions, primarily across product and engineering, leaving Etsy with around 1,600 employees. The company expects about $35 million in severance, benefits and related charges, with the program substantially completed by the end of the third quarter.

CEO Kruti Patel Goyal said the restructuring was not launched with a savings target.

“Cost savings are a consequence of these changes, but they are not the objective. We didn't start this work with a cost reduction target or a goal of making Etsy smaller,” she said.

The new buyback carries no expiration date and sits alongside $578.2 million remaining under Etsy's previous authorization. The fresh $2 billion program alone equals roughly one-fifth of Etsy's current market value, although actual purchases will depend on the share price, market conditions and cash needs.

Etsy's second-quarter results showed improving transaction activity but lingering customer pressure. Comparable Etsy marketplace gross merchandise sales rose 7.5% to $2.58 billion, while revenue increased 6.2% to $668.3 million. Adjusted EBITDA margin expanded to 29.2%, but active buyers slipped 0.4% to roughly 87 million.

Investor TakeawayInvestors should watch whether Etsy can maintain marketplace growth after reducing product and engineering staffing. Faster feature launches, improving purchase frequency and renewed active-buyer growth would validate management's claim that the restructuring is about execution rather than simple cost reduction.

The buyback is supported by $610.1 million in trailing free cash flow and approximately $1.4 billion received from the completed Depop sale. However, repurchases will create value only if Etsy sustains growth and buys shares below their long-term worth. Weak buyer trends or slower innovation would make the large authorization look defensive rather than opportunistic.

Missouri voters reject measure to end income tax. Etsy (ETSY) will lay off 220 employees, about 12% of its workforce, as part of a restructuring to improve coordination and decision-making speed.

By PYMNTS  |  August 6, 2026

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Etsy CEO Kruti Patel Goyal said during a second-quarter earnings call Thursday (Aug. 6) that the company is applying artificial intelligence in three distinct ways: making Etsy more personal, making Etsy more discoverable, and learning how the next generation of shopping will work through native conversational tools.

Traffic from AI agent platforms remained under 1% of Etsy’s total, although it converts at a higher rate and larger average order size. Machine learning also helped expand Etsy’s ad take rate this quarter by improving relevance and seller budget pacing.

Most companies talking about AI and commerce right now are chasing agentic shopping traffic, the orders that arrive when an outside AI assistant sends a buyer to a marketplace. Etsy’s leadership spent part of the call explaining why that traffic barely matters yet.

Where Etsy Is Employing AI Patel Goyal broke Etsy’s AI strategy into three buckets. Agentic traffic was the smallest of the three by volume. She said the bigger opportunity sits inside Etsy’s own platform, where AI already shapes what buyers see every time they open the app.

Etsy’s clearest AI wins are happening in search and personalization, not in outside agent traffic. The company has built richer buyer profiles covering more than 65 million shoppers, feeding real-time personalization into search results, home feed content and marketing outreach, Patel Goyal said. The system creates a compounding effect, as the more a buyer engages, the more relevant each subsequent visit becomes.

That personalization layer is showing up directly in revenue. Etsy’s overall take rate reached 25.9%, up 130 basis points year over year. Roughly 80 of those basis points came from the divestiture of Reverb rather than organic gains, Chief Financial Officer Lanny Baker said on the call. The rest came from Etsy ads, where machine learning is improving relevance and seller budget pacing.

Etsy’s third AI bucket, native conversational tools, is still in early testing. Its gifting assistant lets buyers describe an occasion or a person in natural language rather than typed search terms, an approach Patel Goyal described as a way to capture shopping intent earlier and more precisely than traditional search allows.

Buyer Growth Turns Positive for the First Time Since 2023 The quarter gave Etsy something it hadn’t had in years: proof that the AI strategy is producing results. Etsy’s active buyer count grew by 350,000 sequentially to approximately 87 million, roughly stable year over year after a long stretch of decline. More significantly, gross buyer additions accelerated. Both habitual and repeat buyer cohorts, the platform’s most valuable customers, grew sequentially for the first time since 2023, Patel Goyal said.

Mobile app engagement is driving much of that shift. App GMS growth accelerated to 12.5% year over year, with the app now representing 47% of Etsy’s total GMS, Baker said. Visits per monthly active user and orders per visit both increased year over year, a pattern Baker attributed to fresher, more diverse content replacing recently viewed listings in the app’s feed.

Young buyers are entering the funnel through different channels than before. Etsy shifted marketing investment toward YouTube and TikTok, including a partnership with pop singer Olivia Rodrigo that combined an in-person activation with an exclusive merchandise collaboration, Patel Goyal said. The shift drove a fivefold increase in visits from millennial and Generation Z audiences on those platforms during the first half of 2026.

What Else Stood Out

The company closed the sale of Depop, its secondhand fashion marketplace, to eBay on July 30, generating $1.4 billion in cash proceeds, and used part of that capital to accelerate share buybacks during the quarter. Etsy has no current plans to launch live shopping, Patel Goyal said, although there has been “real innovation” in the space from competitors, according to Baker. The company is watching the channel rather than building it. Trailing 12-month gross merchandise sales per active buyer rose 2.8% year over year. Average order value was driven up partly by sellers raising listing prices and partly by Etsy’s search improvements surfacing higher-quality inventory. Seller retention improved alongside seller growth, with the company describing a healthier seller base overall compared to the prior year. Topline Results and Third-Quarter Outlook Etsy reported second-quarter Etsy marketplace GMS of $2.6 billion, up 7.5% year over year. Revenue reached $668 million, up 9.3% for the Etsy marketplace on a standalone basis, with a take rate of 25.9%.

For the third quarter, Etsy guided Etsy marketplace GMS to a range of $2.53 billion to $2.58 billion, representing 4% to 6% year-over-year growth, with a take rate of approximately 26%. The company raised its full-year 2026 outlook to mid-single-digit GMS growth, up from a prior low-single-digit forecast.

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Etsy (ETSY - Free Report) came out with quarterly earnings of $1.34 per share, beating the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +14.53%. A quarter ago, it was expected that this online crafts marketplace would post earnings of $0.62 per share when it actually produced earnings of $0.89, delivering a surprise of +43.55%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Etsy, which belongs to the Zacks Internet - Commerce industry, posted revenues of $668.31 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.87%. This compares to year-ago revenues of $672.66 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Etsy shares have added about 55.9% since the beginning of the year versus the S&P 500's gain of 13%.

What's Next for Etsy?While Etsy has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Etsy was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.28 on $651.61 million in revenues for the coming quarter and $5.44 on $2.81 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

TripAdvisor (TRIP - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.

This travel website operator is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of -8.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

TripAdvisor's revenues are expected to be $508.66 million, down 3.9% from the year-ago quarter.