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Posted by
Two Blokes Jul 19 -
Filed in
Stock
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2 views
I am downgrading Etsy to 'hold' as revenue acceleration hasn't materialized despite management's product investments amid macroeconomic and competitive pressures. In Q1 FY25, GMS declined at an accelerated rate, with active buyers/sellers leaving the platform. Plus, forward Q2 management guidance shows no signs of bottoming in GMS yet. Etsy's Services revenue is growing at a stronger rate, which is a positive, but it is not enough to reignite investor optimism without GMS stabilization and reacceleration in marketplace revenue.
