Etsy Stock (NASDAQ:ETSY)
Etsy (NASDAQ:ETSY) stock dropped 6% by 3 p.m. ET on Wednesday, which was more volatile than the 0.9% drop in the S&P 500. Owners of the e-commerce platform have had a rough year overall, down 43% during the first nine months of 2022.
The drop in Etsy stock occurred as investors lost some of their optimism earlier in the week over the stabilization of economic growth tendencies.
What’s the Reason?
The Nasdaq Composite Index dropped by 1% on Wednesday, reflecting a general market decline. The gains that investors experienced earlier in the week that helped send Etsy stock higher were partially erased by this action.
Due to investors’ lessening pessimism that a worldwide recession may be on the horizon, the stock performed very well on Monday. Today’s drop indicates a little reversal in the mood when seen in that light.
The value of Etsy stock fluctuates widely with investors’ expectations for the economy. Inflation, a stronger U.S. currency, and increasing interest rates are just a few of the changing macroeconomic dynamics officials at Netflix cited this week as contributing to an unusually clouded future. On Tuesday, Netflix said that upper management had “less than typical insight” into its near-term projections.
What’s Next?
In such a scenario, stock prices across the board, including Etsy stock, are likely to be more volatile. The company’s third-quarter results will be released in early November, which is wonderful news.
Essential parameters for expansion, such as the total number of buyers, total number of items sold, and total amount of money made by sellers, will all be included in that announcement. These indicators were primarily positive in Etsy stock’s most recent report in late July. Still, a slight drop in sales volumes caused some investors to worry about the company’s potential as a growth stock.
Etsy (NASDAQ:ETSY) has the opportunity to alleviate some of those concerns if it achieves or exceeds the Q3 sales projection set by management, which is $540 million to $575 million. The stock price volatility in the weeks preceding Netflix’s Q3 earnings announcement may be partially attributed to this broad range, which reflects the same challenging forecasting circumstances that Netflix executives mentioned last week.
Featured Image- Megapixl @ NycRuss
Author Shariq Khan 
