Etsy Inc. (ETSY) Update
On June 5, 2025, Bernstein SocGen Group reaffirmed a Market Perform rating on Etsy Inc. (NASDAQ: ETSY) with a price target set at $45. The analysts noted a significant rise in investor confidence, which has contributed to a 32% increase in Etsy's shares over the past month.
According to Bernstein, the stock's recent upward trajectory can be attributed to alternative data suggesting a slowdown in the annual decline of Gross Merchandise Sales for May. This trend presents a more optimistic outlook for Etsy’s growth, especially when compared to its previously lower trading multiples. Over the last week, the stock has surged by 16.15%, and it has climbed 16.37% year-to-date.
While the exact reasons behind this stock surge remain somewhat ambiguous, analysts speculated that decreased traffic to Temu, a competitor of Etsy, could have played a role. They also suggested that changes in the product listings on Etsy may have positively influenced this momentum.
Additionally, the report highlighted a rise in credit card spending in May and an increase in monthly app usage for Etsy. This coincided with a 43% decline in active users for Temu year-over-year. Although the analysts acknowledged a potential mismatch between their data and Etsy’s reported Gross Merchandise Sales, the overall trends indicate a favorable direction for the company.
Etsy, Inc. operates global online marketplaces, connecting buyers and sellers through its primary platform, Etsy, in addition to Reverb for musical instruments and Depop for fashion resale.
While there is potential in ETSY as an investment, analysts expressed that certain AI stocks may offer higher returns with less risk. For insights on an affordable AI stock poised to benefit from current trends, visit our free report on the best short-term AI stock.
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