Why I love Etsy
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.
