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5 Reasons Etsy's Stock Bottomed

Summary

Etsy ended 2015 on a strong note.

Gross merchandise sales are improving.

Marketing costs acceptable as Etsy builds community, mobile tools and attracts buyers and sellers.

Investors who bought into Etsy's (NASDAQ:ETSY) IPO may still feel angst over the company's stock performance. Last quarter's results, which include encouraging holiday activity, might change that. Those who bought Etsy's stock when it bottomed in February at $6.04 might consider staying bullish on the company. There are five reasons that suggest Etsy's stock bottomed.

1) Strong fourth quarter

In the fourth quarter, Etsy demonstrated strong GMS (gross margin sales) benefited from loyal, active buyers. For the full year, 81% of its GMS came from its existing user base, up from 78% in 2014. Etsy's opportunity here comes from getting these customers making multiple purchases more often.

Holiday sales benefited from Etsy's e-marketing campaign. A global marketing blitz on Instagram, Facebook and YouTube (featuring Ellen Degeneres) involved sending 20 million push notifications and 900 million emails. If these customers engage with Etsy's...


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