Etsy Inc
ETSY: XNAS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$445.00 | Ngg | Mfhzcbqf |
Etsy's Competitive Position Intact, but Difficult Macro Pinches Near-Term Prospects
Business Strategy and Outlook
Etsy has carved out an interesting competitive niche, jockeying for e-commerce wallet share across a variety of heterogeneous verticals in the long tail of unbranded products. The firm’s four marketplace properties—Etsy, Reverb, Depop, and Elo7—all target non-commoditized inventories (artisanal crafts, used musical instruments, and vintage clothing resale), generate commissions on third-party, peer to peer sales, and strive to create a “treasure hunt” experience around a unique, customizable, and consequently less price elastic product suite. The firm's core "Etsy" marketplace accounts for just shy of 90% of consolidated gross merchandise volume (GMV).