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A closer look at Etsy Inc.

by Tim Straiton
Saturday 19th December 2020

Etsy Inc. closed the week at 190.76, a new high for the stock and the best performer in the S&P500 over a 40 week period. There are a few valid reasons why Etsy Inc. continues to be so popular. Virtually everything for sale on its platform is unique. Over 80% of Etsy buyers say the site sells items that cannot be found anywhere else. The site also provides users an inexpensive place to sell their own items. In late October, Etsy announced that its gross merchandise volume (GMS) revenue for the third quarter ended September 30 increased 119.5% year-over-year to a record $2.6 billion. The company’s total revenue was $451.5 million for the third quarter, up 128.1% year-over-year, driven by strong growth in both marketplace and services revenue.

Looking at the technicals, the stock is currently in a strong uptrend and trading at 45% above its rising 200 day moving average which is now at 105.06. There is no sign of weakness developing at present and the price runs close to the upper Bollinger band on a daily basis. The 14 day relative strength index for this stock is well into overbought territory at 77%, therefore it would be wise to protect long positions with a stop loss at 180.


 

Charts courtesy of