Etsy Stock Sinks on Revenue Miss: What to Know
Etsy stock is notably lower Wednesday after the online retailer fell short of revenue expectations for the key holiday quarter.


Etsy (ETSY) stock plummeted out of the gate Wednesday after the online marketplace beat profit expectations but came up short of revenue estimates for its fourth quarter.
In the three months ending December 31, Etsy's revenue increased 1.2% year over year to $852.2 million. Its earnings per share (EPS) rose 66.1% from the year-ago period to $1.03.
Etsy also said gross merchandise sales (GMS) decreased 6.8% to $3.7 billion, active sellers decreased 10% to 8.13 million and active buyers decreased 1.1% to 95.46 million compared to the year-ago period.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Despite facing significant gross merchandise sales headwinds in 2024, we are proud to have delivered year-over-year revenue growth and very strong profitability, while simultaneously investing in our future," said Etsy CEO Josh Silverman in a statement.
Silverman added that "foundational improvements" to Etsy's marketplace are "enhancing customer experiences," and he believes this "will further differentiate the Etsy experience, driving consideration and purchase frequency as we work to get back to GMS growth."
The company's headline results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $861.8 million and earnings of 93 cents per share, according to CNBC.
For its first quarter, Etsy said it expects GMS to decline at a rate similar to its performance in the fourth quarter.
"We see several factors that we believe should position the Etsy marketplace for improved GMS performance beyond the first quarter," said Chief Financial Officer Lanny Baker in a statement. "In addition, we're committed to maintaining a strong bottom line and generating healthy free cash flow, while also investing in the things which will further differentiate Etsy, build our opportunity, and drive our long-term growth."
Is ETSY stock a buy, sell or hold?
Etsy has lagged the broader market over the past 12 months, down 32% vs the S&P 500's 24% total return (price change plus dividends). And Wall Street remains on the sidelines when it comes to the consumer discretionary stock.
According to S&P Global Market Intelligence, the average analyst target price for ETSY is $62.86, representing implied upside of over 16% to current levels. This is likely the result of the share price falling faster than analysts' can keep up with vs expectations for a big rally. Meanwhile, the consensus recommendation on the mid-cap stock is a Hold.
Financial services firm Jefferies is one of those with a Hold rating on ETSY, along with a $54 price target.
"We could see gross merchandise sales growth accelerating in the second half of 2025 as a result of easier comparisons created by efforts to shift resources toward long-term improvements that have driven 'several points' of near-term headwinds to GMS, but could potentially yield benefits to frequency and buyer spend over time," says Jefferies analyst John Colantuoni.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
AI-Powered Smart Glasses Set to Make a Bigger Splash
The Kiplinger Letter Meta leads the way with its sleek, fashionable smart glasses, but Apple reportedly plans to join the fray by late 2026. Improved AI will lure more customers.
-
How to Plan the Perfect Italian Dream Trip After 60
Proper preparation is everything for U.S. retirees when planning an Italy "trip of a lifetime."
-
The GENIUS, CLARITY, and Anti-CBDC Acts: What Bitcoin Investors Need to Know
Movement on the crypto front at the federal level has the potential to usher in substantial change. Here's what it means for your portfolio.
-
Wellness Stocks to Invest in Now
Breakthroughs that help us live longer, healthier lives can also create opportunities for investors.
-
Three Steps for Evaluating a Downsize in Retirement: A Financial Planner's Guide
Unless you think things through, you could end up with major (and costly) regrets. To make the right choice, base it on the three keys to retirement happiness.
-
Worried About Your Retirement Income? Four Questions to Ask Yourself, From a Financial Planner
If you're nearing or in retirement and stressing about your retirement income (so many of us are), consider taking some time to think about these four issues.
-
Stock Market Today: Stocks Step Back From New Highs
Investors, traders and speculators continue the low-volume summer grind against now-familiar uncertainties.
-
Do You Need Flood Insurance? I'm an Insurance Expert, and Here's Where You Can Get It
Standard homeowners insurance does not cover flood damage, so you might need separate flood insurance, which you can get either through FEMA or private companies. Here are the details.
-
I'm an Investment Professional: These Are the Three Money Tips I'm Giving My College Grad
College grads can help set themselves up for financial independence by focusing on emergency savings, opting into a 401(k) at work (if it's offered) and disciplined, long-term investing.
-
Stock Market Today: S&P 500, Nasdaq Hit New Highs on Retail Sales Revival
Strong consumer spending and solid earnings for AI chipmaker Taiwan Semiconductor Manufacturing boosted the broad market.