Etsy Inc Stock Discussion

Judging from pre market movement, it seems like the Wall Street is trying to put aside Powell’s comment on inflation is lacking progress in moving towards their 2% target.
Is the Wall Street ignoring the risk of keeping interest rate elevated throughout the year?
On the other hand, in the Main Street, some businesses are feeling the impact of a high interest rate environment and forecasting a potential weak market outlook (Starbucks, Netflix, eBay, Etsy)
Mismatch in e...

Etsy's ROCE growth, a sign of profitable capital reinvestment, is desirable despite rising current liabilities. Further research into the sustainability of these trends could be warranted.

Market's response to Etsy's Q4 results has greatly influenced business perception. The narrative has been about inflation and rates, with anticipated rate cuts in 2024. Any news contradicting this could harm major indices. It's advised to invest in high-quality, cash-flowing companies for market stability. Investors who bought Etsy's shares 5 years ago now have a $1,265 worth investment.

Etsy's struggle to return to growth is evident in its Q4 results, with profit falling short of Wall Street's expectations. The company's outlook for Q1 2024 also suggests a slow start to the year, despite planned product and marketing investments.

The company's lower-than-expected GMS and the projected decline for Q1 2024 could negatively impact investor sentiment. The company's performance may be influenced by a dynamic macroeconomic environment, a highly competitive retail environment, and changes in consumer discretionary product spending.

Elliott Investment Management's involvement in Etsy could bring significant changes. Despite optimism for 2024 due to lower interest rates, caution is advised. It's recommended to own high-quality, cash-flowing companies to weather market fluctuations.