Why I love Etsy

Etsy is up 12% today.

If I hadn’t received a few texts that Etsy is up 12% today, I wouldn’t have even known. Like I mentioned before, my investments are automated on a weekly basis.

Here’s a quick summary of why I’m so bullish on Etsy.

Qualitative

  • #1 marketplace for handmade goods

  • Its marketplace has a vitality factor. For example, the new desire for face masks brought a new wave of buyers and sellers onto the platform. 

Quantitative

  • Passed $1B in revenue

  • Positive gross, operating and profit margins (rare for fast growing companies, building right from the start)

  • While Etsy is 1/5 of Shopify’s market cap and 1/2 of its revenue, it’s income, revenue Q/Q, revenue Y/Y, gross margin, operating margin, profit margin are all higher. 

  • Doubled number of buyers in 2020 vs 2019

  • Increase in value of recent new buyers. “A buyer in the second quarter of 2020, whose first purchase was not a face mask, spent 50% more in their subsequent purchases in the first 90 days on Etsy than a new buyer in the second quarter of 2019” Etsy 10-Q 2020 Q3.

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