Etsy Stock (NASDAQ:ETSY)
Traders in Etsy stock (NASDAQ:ETSY) started Tuesday off on the wrong foot as the market overall fell. By 11 a.m. ET, shares of the e-commerce platform Etsy stock, were down 4%, against a 0.8% drop in the S&P 500. Etsy stock has underperformed the market by 52% in 2022, falling by an additional 13% from its high before the dip.
Etsy stock decline on Tuesday was driven not just by the general market sell-off but also by concerns about Etsy stock’s impending earnings release.
What’s the Reason?
Negative sentiments regarding global development were the primary cause. Due to several key economic factors, including inflation, a deteriorating U.S. economy, and the crisis in Ukraine, the IMF has cut its 2023 prediction. Technology stocks often fell on a day when the forecast for global growth was less optimistic.
Inflation and other economic challenges, Etsy, said in its most recent financial report at the end of July, led to a dramatic decline in sales volumes via its platform. After adjusting for fluctuations in foreign exchange rates, Etsy’s second-quarter growth was just 3%, far lower than the 31% growth in all of 2021. Investors were concerned about the potential for more damage to the company’s growth forecast from ongoing economic challenges.
What Should You Do Now
In its following earnings report, which is expected to be released in early November, Etsy will give further details. Etsy stock July forecast expected sales of $2.8 billion to $3 billion, down from $3.1 billion the previous year.
Despite the slight drop in sales, keep an eye on Etsy’s active customer base for signals of sustained interest. Etsy has been doing better on this front than competitors like eBay, which may keep that trend going. Even if consumer spending continues to decline, management expects profitable operations. Etsy stock price has a decent chance of rebounding from low days if the company consistently wins in these areas.
Featured Image- Megapixl @ NycRuss
Author Shariq Khan 
