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Etsy: Overpriced And Departing From Business Ethos

A myriad of artisans cannot produce the growth and margins expected in the stock market.

Etsy is trading at gross revenue valuation steeper than Amazon or eBay.

A 1.5x gross revenue with handicap, Etsy is better priced around $3.77 PPS.

Etsy, Inc. (NASDAQ: ETSY) IPO crash continues and the future looks bleak. At the close of trading on November 20th, the stock traded at $8.47 PPS. This was a 76% decrease from opening day highs on April 16, 2015. Now that lows are showing a consolidating trade pattern the easy call is to be bullish. However, the value is just not there.

Etsy, Inc. is an online marketplace for entrepreneurs, every-day artists, makers, designers and collectors with personal expression. Now that the company trades with the public market it competes within a culture demanding rapid revenue growth, stunning gross profit, reduced expenditures, etc. The problem is that Etsy, Inc. cannot control this myriad of creators to produce these results in unison.

Imagine Sally in New York that collects and sells vintage dresses. Will she outsource her personal labor to interns, globalize her purchases from Thailand or move the office to Ireland for an inversion?

Imagine Tom in Ohio that sells his mixed-metal jewelry. Will he start buying silver in bulk from China and...


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