Etsy Stock Downgraded as Goldman Sachs Predicts Further Decline

In 2024, Etsy Inc. has experienced a significant decline in its stock value, dropping approximately 38% year-to-date. This downturn is attributed to increasing competition in the eCommerce sector, which has raised concerns among analysts regarding the company's future performance. Goldman Sachs has expressed skepticism about Etsy's growth prospects, citing low visibility into gross merchandise sales and the potential for ongoing market share losses. Analyst Eric Sheridan has downgraded Etsy's rating from Neutral to Sell, reducing the price target from $70 to $45. This decision reflects a broader concern that the company's gross merchandise sales have been declining for an extended period, with little indication of a return to positive growth. Furthermore, the analysis suggests that Etsy's marketplace may continue to lose market share in the global eCommerce landscape, particularly as buyer growth remains muted and competition intensifies. Despite the stock's recent performance, the risk/reward scenario for investors appears unfavorable, with the possibility of further negative revisions to medium-term consensus estimates looming. As of the latest publication, Etsy's shares were trading at $50.94, indicating a slight uptick but still reflecting the overall downward trend in the company's stock value.