Etsy basically basically met consensus analyst expectations for Q3 and showed massive improvement across the board from Q2, which was its first as a public company.
Etsy is down more than 7% in after hours trading.
Such is Etsy.
Why is Etsy watching its stock get pummeled even though it added almost $20 million in revenue quarter-over-quarter and grew merchandise sales by 22% over the same period with similar gains in active sellers and active buyers?
Because Wall Street will never understand Etsy.
The Brooklyn-based online flea market has always wanted to be the anti-corporate corporation, which is maybe why it tried to act like its IPO was being handled by the ACLU when it was actually being mostly done by Goldman Sachs. Etsy is also NOT Amazon, even if a lot of people who bought their stock thought they were getting on another Amazon.
The people who made Etsy work, the people who made and sold the stuff on Etsy, wanted a place that wasn't Amazon or eBay to do their thing, and they rebelled when they saw Etsy get a little more corporate. So confused are they by Etsy's decision to get a ticker symbol that many of them are now selling on an Amazon platform designed to destroy Etsy.
So, Wall Street is a little pissed about that. Fair enough.
But then there's the crunchy stuff.
Etsy loves to spend money on growth and charity stuff. That worked great as a private concern staffed by nice people in alpaca sweaters who genuinely gave a sh!t about Central American poverty. But life on the stock markets is just a little more results oriented.
And, sure, Etsy is seemingly trying to spend money in a more professional fashion these days, but you'll have to forgive shareholders if they're not exactly set aflame with the excitement by the idea of Etsy looking to make same-day deliveries of handmade goods.
Listen. We've been as mean to Etsy as anyone around these parts, but even we have to say that setting expectations and then smacking Etsy on the nose for pretty much meeting them is some cruel sh!t.
And it's almost the Christmas season. Even if analysts are still feeling pissy for thinking they got catfished by Etsy, Christmas is a time to come together and feel the cheer.
Plus, with all those Christmas gift sales Etsy is sure to lose less than $15 million in net income going forward... Huzzah!