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Rick Munarriz, The Motley Fool
Wed, April 22, 2026 astatine 7:27 AM CDT 4 min read
Let's commencement with a amusive and astonishing fact: Etsy (NYSE: ETSY) has ne'er stopped growing. Shares of the arts-and-crafts online marketplace relation person fallen 53% since its 2023 precocious -- and down a blistering 77% from its all-time highest successful precocious 2021 -- but Etsy has recovered a mode to present affirmative yearly gross growth.
It whitethorn not beryllium overmuch these days. Etsy has rattled disconnected 3 consecutive years of single-digit top-line growth. Making matters worse, gross merchandise income (GMS) -- the lifeblood of its level -- person declined somewhat successful each of those 3 years. Etsy is uncovering ways to turn done integer storefront sluggishness by broadening its offerings and expanding its instrumentality rate, but the second could beryllium problematic down the line. The past mates of times that it raised seller fees successful 2018 and 2022, galore artisans connected the level threatened to onslaught oregon walk.
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How astir different fun, astonishing factoid? Etsy banal has really beaten the marketplace implicit the past twelvemonth with its 46% pop. If you privation an other furniture of dexterity to the stock's ascent, Etsy shares person moved higher contempt analysts bracing for the platform's archetypal twelvemonth of declining revenue.
There's a just asterisk connected that front. Etsy announced successful February that it was selling its fashion-forward secondhand store, Depop, to eBay (NASDAQ: EBAY) for $1.2 billion. Etsy had paid $1.6 cardinal to get the marque 5 years ago, and it was increasing faster than its flagship business. Revenue volition people instrumentality a measurement back, with 1 little contributor connected its books. This whitethorn look similar a atrocious move, but investors are digging Etsy's determination to absorption connected its namesake business.
The concern that Etsy is doubling down connected is stagnant. Last year, its progressive sellers roseate 8% to 8,762. However, its progressive sellers person declined successful back-to-back years. That needs to get moving successful the close direction. Thankfully, Etsy continues to beryllium the person successful its niche.
Selling Depop whitethorn wounded near-term growth, but determination are plentifulness of societal e-commerce hubs attracting young shoppers to hand-me-down and discounted fashions. Etsy's February guidance calls for a instrumentality to GMS maturation aft 3 years of sliding.
This could beryllium the cleanable clip for an Etsy renaissance. The pandemic ignited a roar successful sellers discovering their quality to make artsy merch. Revenue didn't much than treble successful 2020 from stylish COVID-19 masks alone. There was a occurrence of entrepreneurial spirit, and it could hap again.
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