Etsy: GMS Recovery And Depop Sale Are Positive Catalysts (Rating Upgrade)

Gary Alexander33.35K FollowersFollow5ShareSavePlay(10min)CommentsSummaryEtsy is regaining positive momentum after a period of underperformance, driven by strong Q4 results.The company returned to GMS growth during the crucial holiday quarter, reversing a string of disappointing quarters.I'm upgrading Etsy to neutral, owing to the stock's valuation compression over the past few months and its improved GMS trends.The company's sale of Depop to eBay, following its earlier sale of Reverb, allows the company to deleverage its balance sheet.It's also clear that Etsy's "back to basics" approach to focusing on its core Etsy brand can be a tailwind for margins. herstockart/iStock Unreleased via Getty Images In a very volatile stock market in 2026, the biggest asset investors can have is to constantly assess share price movements and be willing to change our minds as fundamental stories shift and valuations decline. TheThis article was written byGary Alexander33.35K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.