why did etsy stock go down

Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Follow him on Twitter to get links to his articles, quotes from books he reads, and a look at the sources that inspire him. Retirement Investing Basics Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.The stock's gain follows Etsy's third-quarter update. He has previously served in the U.S. Army on active duty and holds an MBA from Colorado State University. Daniel Sparks is a senior technology specialist at The Motley Fool. This revenue, however, included $6 million sales from music-gear online marketplace Reverb -- a company Etsy acquired in August.The company's earnings per share for the period were $0.12, equal to analysts' consensus estimate for the metric.Etsy's gross margin for the period was 65.2%, down 360 basis points from 68.8% in the year-ago period.

See you at the top! Fool since 2011. Stock Market We began the year with a fresh slate of product initiatives and our teams' development velocity surged to an all-time high, delivering healthy GMS growth during the quarter. Investing is his primary passion. Why Etsy Stock Was Slipping Today Shares of the quirky online marketplace fell after revenue came up a bit short in the first-quarter earnings report. To be sure, virtually all of Etsy's plunge came at the start of last month, with the stock down 20% in the two trading days after its quarterly update hit the wires.

Etsy's (NASDAQ:ETSY) stock has surged more than 700% over the past five years as its online marketplace for handmade goods has attracted artisans and shoppers. I write about consumer goods, the big picture, and whatever else piques my interest. It also raised its EBITDA guidance for the year $1 million to $182 million to $198 million.Considering the improved guidance, today's sell-off is a little surprising, but Etsy stock had Stock Advisor launched in February of 2002. Etsy is an e-commerce website focused on handmade or vintage items as well as art and craft supplies. Let's conquer your financial goals together...faster. "The contraction in gross margin was primarily driven by fees related to Etsy Payments, amortization related to our recent acquisition of Reverb, and our consolidated ad platform, Etsy Ads, which we believe is a tailwind to revenue growth and GMS," management said in the company's third-quarter earnings release.Etsy updated its full-year outlook to incorporate the impact of its Reverb acquisition. The outsize growth in revenue compared to GMS came thanks to an increase in commissions and seller fees last year.Growth was strong in both its marketplace segment and services, and active buyers rose 18% to 41 million.Etsy also noted that it temporarily paused some marketing investments in the quarter in order to test some of its models, which may have explained the sequential deceleration in GMS. "Etsy actually boosted its full-year guidance, as the company is now seeing GMS rising 18% to 21% to $4.6 billion to $4.8 billion from a previous forecast of 17% to 20%. ETSY stock sold off despite a dazzling Q2 earnings report, but the results show why the rally should resume in very short order. About Us Many individuals also sell craft supplies such as beads, wire, and jewelry-making tools. Retirement That did, however, cause profits to surge, as operating income jumped 129% to $31.6 million, and adjusted earnings per share rose from $0.10 a year ago to $0.24, easily beating expectations at $0.14.CEO Josh Silverman said, "We are pleased to report another quarter of strong growth. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Personal Finance Returns as of 08/12/2020. The company now expects revenue to rise 34% to 35% year over year, up from a previous forecast for 32% to 34% growth. Personal Finance Cumulative Growth of a $10,000 Investment in Stock AdvisorWhy Etsy Stock Was Slipping Today @themotleyfool #stocks $ETSY Cumulative Growth of a $10,000 Investment in Stock AdvisorWhy Etsy Stock Fell Thursday @themotleyfool #stocks $ETSY (TMFDanielSparks) About Us While the results were solid, some Etsy's third-quarter revenue rose 31.6% year over year to $197.9 million.