Etsy: Efficiency Push And GMS Strength

Gary Alexander 34.3K Followers Follow Summary Etsy remains a buy after a post-earnings dip, with strong Q2 results and a healthy guidance raise supporting the investment thesis. ETSY's 12% headcount reduction and $2B buyback authorization signal a commitment to operational efficiency and capital return. Standalone Etsy GMS accelerated to 7.5% y/y growth, aided by higher average order values and increased active buyers. ETSY's margin expansion, cost discipline, and divestitures support a 'growth at a reasonable price' narrative despite macro and competitive risks. herstockart/iStock Unreleased via Getty Images If there’s one thing that most investors can agree on, it’s that the Q2 earnings season has been a very volatile catalyst for stocks. Plenty of earnings overreactions have occurred this quarter, and I consider Etsy ( This article was written by Gary Alexander 34.3K Followers Follow With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood. Analyst’s Disclosure: I/we have a beneficial long position in the shares of ETSY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.