Etsy Stock Is Surging Thursday: What's Going On?

Etsy Inc ETSY shares are trading higher Thursday after the company announced the appointment of Elliott Investment Management’s Marc Steinberg to its board.

What To Know: Steinberg, a partner at activist investment firm Elliott Management, will join Etsy’s board, effective Feb. 5. He will also join the board’s audit committee.

“Etsy has a highly differentiated position in the e-commerce landscape and a uniquely attractive business model, supported by a distinctive and engaged community. We became a sizable investor in Etsy and I am joining its board because I believe there is an opportunity for significant value creation,” Steinberg said.

Steinberg is responsible for public and private equity investments across a range of industries, including the technology, media and telecommunications sectors at Elliott Management. He also sits on the board of Pinterest Inc PINS.

Etsy’s online marketplace connects millions of passionate and creative buyers and sellers around the world.

Is ETSY A Good Stock To Buy?

An investor or trader's decision to buy or sell a stock is unique to their time horizon and risk tolerance. Many typical investors evaluate earnings growth and valuation on a particular stock before making a decision.

For Etsy, for example, you'll notice that earnings in its last quarter grew 25.49% source. As an investor, you'll want to decide whether that's better or worse than what you'd like to see among stocks in your portfolio.

On the valuation side, Etsy's price to earnings ratio – a measure of how much an investor pays for the company's earnings – has compressed 17.04% in the current quarter when compared with last year. That places it below similar businesses Amazon.com, Alibaba Gr Holding and PDD Holdings in its sector. You'll need to decide whether that makes it more or less attractive based on how you think the company will perform over time.

There are many different valuation metrics that may help you make a decision. Find more on Etsy's quote page, or if you'd like a deeper dive in an advanced program, try Benzinga PRO for free.

See Also: This Woman Retired In Her Early 40s With $850K, But Hasn’t Given Up Her Etsy Shop

ETSY Price Action: Etsy shares were up 9.75% at $73.05 at the time of publication, according to Benzinga Pro.

Photo: Sergei Elagin from Shutterstock.