Etsy went public roughly a month ago, and it was quite a little show.
Early trading sent shares in the online flea market to more than double its IPO price and suddenly everyone on Wall Street was thinking about taking up knitting.
Well, that was a whole month ago.
Etsy Inc.'s stock price fell more than 20% Wednesday, briefly dipping below its $16 IPO price for the first time since it went public a month ago.
Well (at least this time) maybe not...
The swift drop in Etsy’s shares came on the trading day after it released its first earnings report as a public company. Etsy’s quarterly loss was higher than expected. Much of that came thanks to millions of dollars in costs associated with a restructuring that the online marketplace said could lower its future tax bill.
Investors didn’t seem to be willing to simply sit on those losses or the company’s predictions of rising costs in the second quarter, and instead raced out of the stock. By early afternoon, Etsy’s daily volume was more than three times the volume over the past month.
Etsy had a rough first quarter as a public company, took a loss and missed some projections. That's a bummer, sure, but it was no secret during Etsy's hippy finance caravan IPO roadshow that the company had never turned a profit... ever.
The whole point of Etsy was the promise that it can eventually turn the corner and make billions on making millionaires out of cat ladies with a crafting habit. But it was intent on plowing money into a bunch of crazy sh*t in the meantime and seeing what stuck. They're from Brooklyn! They're different.
Apparently that corner is too far away for some of those anti-artisinal types on The Street (you know who you are) and the Etsy ship (made of papier mache and hopes) is suddenly light on passengers.
Or maybe Wall Street just forgot why they were so psyched about Etsy in the first place. It has been a whole month.