Etsy Stock Is Edging Lower Thursday: What's Going On?

Etsy Inc ETSY shares are trading lower Thursday following the company's second-quarter financial results. Berstein downgraded the stock Thursday morning and Oppenheimer cut its price target. 

What Happened: Etsy said second-quarter revenue increased 7.5% year-over-year to $628.88 million, which beat the consensus estimate of $621.87 million, according to Benzinga Pro. The increase was driven by strength in Etsy Ads and growth in payments revenue.

The company reported quarterly earnings of 45 cents per share, which beat analyst estimates of 41 cents per share.

Consolidated GMS fell 0.6% year-over-year to $3 billion. Etsy Marketplace GMS declined 0.7% to $2.6 billion. Active buyers increased 3% year-over-year, but GMS per active buyer declined 6% year-over-year. 

Etsy said it ended the quarter with $1.2 billion in cash, equivalents and short- and long-term investments.

"We are encouraged to report the second consecutive quarter of positive year-over-year growth in Etsy marketplace active buyers, improvement in GMS trends in some of our top categories, and early signs that both GMS per buyer and habitual buyer trends are stabilizing," said Rachel Glaser, CFO of Etsy.

Etsy guided for third-quarter revenue of $610 million to $645 million and consolidated GMS of $2.95 billion to $3.1 billion. Adjusted EBITDA margin is expected to be between 27% and 28%. 

Analyst Assessment:

• Bernstein analyst Nikhil Devnani downgraded Etsy from Outperform to Market Perform.
• Oppenheimer analyst Jason Helfstein maintained Etsy with an Outperform and lowered the price target from $150 to $135.
• Needham analyst Anna Andreeva reiterated Etsy with a Buy and maintained a $130 price target.

See Also: iPhone 15 Poised For A Massive Overhaul After Six Years, But Analyst Predicts Lower Demand Compared to iPhone 14

ETSY Price Action: Etsy shares were down 8.92% at $87.51 at the time of publication, according to Benzinga Pro.

Photo: Adrian Malec from Pixabay.