Etsy (ETSY) Stock Forecast & Price Target

Etsy's consolidated gross merchandise volume is projected to reach $12.5 billion in 2024, highlighting its position as a major player in the e-commerce marketplace, particularly in the vintage and craft goods niche. The company has demonstrated strong performance metrics, with US gross merchandise sales increasing by 59% year-over-year, and Depop achieving a 39.4% year-over-year growth in gross merchandise sales. Additionally, there has been a notable increase in the number of reactivated buyers on Etsy's core platform, which rose by 3.8% year-over-year, further indicating positive engagement trends and growth potential.

Etsy has reported a year-over-year decline in Total Active Buyers for the fifth consecutive quarter, with figures dropping to 93.2 million, a 4% decrease from the prior year. The firm is also experiencing a sequential decline in Depop's margins due to ongoing investments in brand marketing, leading to a projected 5% reduction in EBITDA estimates as these initiatives are anticipated to carry through the first half of 2026. Furthermore, Etsy's underperformance, compounded by weakness in key categories such as home decor, highlights its challenges in maintaining growth in a competitive e-commerce environment.