Will Etsy's stock price rise to $60? One Wall Street analyst thinks so.

Online MarketsEtsy (NASDAQ: ETSY)is struggling to thrive in the post-Pandemic world.Wells Fargo) Analyst Ken Gawrelski became even more pessimistic on Thursday, maintaining his bearish rating on the stock and lowering his price target from $62 to $60. The new price target implies a potential decline of about 8% over the next 12 months or so.

hesitate to advance (idiom); to hesitate and hold back

Etsy won customers during the pandemic as consumers shifted their spending online, looking for one-of-a-kind (and often) handmade items from Etsy sellers. Although the number of active buyers on the Etsy platform has doubled since 2019, growth has now stalled.

In 2023, Etsy's gross merchandise sales (GMS) across all platforms was $13.2 billion, a year-over-year decline of 1.21 TP3 T. The company managed to grow revenues by 71 TP3 T thanks to higher fees and growth in ad sales, but last year was the second consecutive year of GMS declines. in 2022, the metric fell by about 41 TP3 T. The company also managed to increase revenue by about $4.5 billion in 2023, a year-over-year decline.

Gawrelski linked Etsy stock's poor performance so far this year to pressure on the company's GMS flourish, and he expects the company's second-quarter guidance to include a similar trend.

Should you buy?

Etsy has carved out a lucrative niche in the e-commerce market. There are few, if any, viable alternatives for those who want to sell unique, handmade and customized items to a large audience.

However, Etsy is likely to step eBay (web auction company)eBay's total merchandise volume has been flat for the past decade. Over the past decade, eBay's total merchandise volume has been flat, and over the past five years, the e-commerce pioneer's stock price has lagged far behind that ofStandard & Poor's 500Index.

Etsy has taken various steps to increase sales, but so far the results have been minimal. Although Etsy's profitability is strong, its growth prospects are not optimistic.

Should you invest $1,000 in Etsy right now?

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Wells Fargo & Co. is an advertising partner of The Ascent, a Motley Fool company. Timothy Green has no position in any of the stocks mentioned above. the Motley Fool holds and recommends Etsy. the Motley Fool recommends eBay and recommends the following options: Short eBay July 2024 $52.50 Call Options. the Motley Fool has a disclosure policy.

Will Etsy's Stock Price Go to $60? 1 Wall Street Analyst Thinks So was originally published by The Motley Fool.