Can OpenAI Save Etsy?
Not too long ago, Etsy (NASDAQ: ETSY) seemed like one of the most promising e-commerce stocks on the market. Sales were soaring, up triple digits during the pandemic, as its online flea market saw a surge of interest during the stay-at-home period. Etsy was confident enough in its business model that it made multiple acquisitions of other peer-to-peer marketplaces, including Reverb for musical instruments, Depop for vintage clothes, and Elo7, a Brazilian version of Etsy.
Fast-forward to 2025, and Etsy's prospects look decidedly different. The company has sold Reverb and Elo7, backing away from its House of Brands strategy, and its revenue growth has flatlined since the pandemic, as it has struggled to recruit new buyers and sellers.
In its second quarter, gross merchandise sales, or the total value of goods sold on its platform, fell 4.8% to $2.8 billion, while revenue rose 3.8% to $672.7 million, driven by on-site ads and higher fees. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), active sellers, and active buyers were all down year over year.
Source Fool.com
