Etsy Is Up Big, But Why?

Shares of Etsy Inc ETSY were rallying in Wednesday’s market session. The stock hit a high of nearly $18 after closing near $16 a day earlier.

After selling off near the end of the day, the stock closed near $16.78, up almost 5 percent.

The obvious question: Why is Etsy up?

A Couple Reasons

Of note, Tiger Global Management lifted Etsy's stock price on Tuesday by revealing a massive stake in the company.

In an interview with Benzinga, Tom Forte of Brean Capital commented that Tiger Global is well regarded in the industry. Forte said that aside from the Tiger Global position, a short squeeze is also a reason for Etsy's big day.

Forte concluded that he's “still bullish on Etsy,” and holds a $23 price target on shares. In a note last month, the analyst wrote that Etsy "has multiple levers to pull to drive sustainable long-term sales growth and adjusted EBITDA margin expansion."

Since its IPO in April, Etsy stock is down more than 40 percent. Shares are, however, up 10.8 percent in the past week.

Image credit: Etsy