Etsy Shares tank on Citron Report
On Thursday, Citron Research, a prominent research firm, accused Etsy Inc of becoming one of the largest platforms in the world for counterfeit goods, causing the e-commerce company’s shares to drop by approximately 6%. The research firm claimed that the percentage of counterfeit goods on the platform had grown too large, and that Etsy could no longer defend it as a small percentage of revenue. The company alleged that Etsy has allowed sellers to purchase “ad words” of the brands and then labeled many of them as trusted websites.
Citron also warned that Etsy could be at risk of running afoul of several US regulatory bodies, including the Federal Trade Commission, the Department of Justice, the US Securities and Exchange Commission, and Customs and Border Protection. Etsy did not immediately respond to a request for comment from Reuters.
Some analysts anticipate that Etsy may have had a bleak holiday quarter(which has not been reported yet) as lower-income consumers limit spending on home goods, clothing, jewelry, and accessories, which account for approximately 60% of the company’s gross merchandise value.
ETSY Stock Price Forecast & Analysis
According to 18 analysts’ Etsy Inc stock forecasts, the average analyst target price for Etsy Inc over the next 12 months is USD 124.60. This suggests a potential downside of around 12% from the last closing price of USD 142.26. The average analyst rating for Etsy Inc is Buy, indicating a positive sentiment towards the stock.
Stock Target Advisor’s own analysis of Etsy Inc’s stock, is slightly bullish based on 9 positive signals and 6 negative signals. The positive signals included strong revenue growth, positive earnings and revenue surprises, and positive analyst recommendations. The negative signals included a high P/E ratio, a decreasing net income, and weak operating cash flow.
Over the past week, Etsy Inc’s stock price has changed by -1.22%, which is a slight decline. However, over the past month, the stock price has risen by +5.64%, indicating a positive trend. Over the last year, the stock price has decreased by -4.03%, which could be concerning for long-term investors. Investors should keep in mind that stock price fluctuations can be impacted by a variety of factors, including market conditions, company news, and global events.