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Investment Thesis
Etsy, Inc. (NASDAQ:ETSY) delivered Q3 results that have a lot of nuance. There's plenty for bears to latch onto, as we'll soon discuss. But my argument when it comes to Etsy is
Etsy At 15x Forward Earnings Entry: The Bull And Bear Cases
Summary
- Etsy's Q3 results have both positive and negative aspects, but the time to be bearish on the stock has passed.
- The company faces challenges in a competitive e-commerce market and needs to address consumer perceptions about its products.
- Etsy's increasing take rate and declining gross merchandise sales raise concerns about its appeal to sellers, but its profitability justifies its valuation.
- Looking for a helping hand in the market? Members of Deep Value Returns get exclusive ideas and guidance to navigate any climate. Learn More »
Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.
With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months.
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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.
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