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Etsy Stock Soars Following Surprising Sale of Depop to eBay

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 2/21/2026, 8:22 am ET 2/21/2026, 8:22 am ET | 5 min 5 min read
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Etsy Inc. stocks have been trading up by 8.35 percent following promising developments fueling investor optimism.

Consumer Discretionary industry expert:

Analyst sentiment – positive

  1. Market Position & Fundamentals: Etsy currently holds a solid market position in the Consumer Discretionary sector, bolstered by its lucrative gross margin of 71.6% and stable income stream with a revenue figure of approximately $2.88 billion. The company’s enterprise value is substantial at $6.48 billion, reflecting strong market valuation despite its negative book value per share of -$11.27. A key financial insight is Etsy’s high EBIT margin at 9.2%, indicating effective operational management. Moreover, its robust free cash flow generation, totaling $307.89 million, underscores its financial stability and capability to fund strategic initiatives.

  2. Technical Analysis & Trading Strategy: Analyzing recent weekly price patterns for Etsy reveals a predominantly bullish trend, with shares opening at 44.36 and closing at 52.159 in recent sessions. Volume analysis supports the momentum observed as the price rallies surpassed past resistance levels, particularly as price touched a peak of 53.73. For actionable trading strategy, consider entering long positions when price retraces to support around $50, as the upward trend is supported by positive sentiments and heightened buying interest through increased volumes. Monitoring for breakouts above recent highs could offer additional buying opportunities.

  3. Catalysts & Outlook: Recent news has favorably impacted Etsy’s prospects. Barclays’ upgrade to an Overweight rating and the planned divestiture of Depop for $1.2 billion reinforce Etsy’s refocus on its core marketplace. The transaction is set to enhance financial flexibility, potentially fueling share buybacks and core investment. Comparatively, Etsy outperforms some Consumer Discretionary benchmarks with key metrics like EBITDA margins showcasing resilience. Valuations suggest a robust outlook as supported by a raised price target to $72 while current trading levels indicate strong support above $64. Overall, the market exhibits confidence in Etsy’s strategic direction, signaling potential uplift against sector headwinds.

Candlestick Chart

Weekly Update Feb 16 – Feb 20, 2026: On Saturday, February 21, 2026 Etsy Inc. stock [NYSE: ETSY] is trending up by 8.35%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Etsy has demonstrated a positive trajectory, particularly with its Q4 earnings that surpassed market expectations. Revenue generated during this period stood robustly at approximately $881.6M, complemented by a significant operating income of $27.69M. The company’s gross profit margins, standing at a strong 71.6%, indicate favorable cost management strategies.

Amidst these solid figures, Etsy’s debt to equity metrics present analytical challenges, emphasized by some incomplete data in the financials. Nevertheless, the robust cash flow figures, supported by an operating cash flow of $317.1M for the quarter, present promising liquidity prospects. The $1.2 billion deal with eBay fortifies Etsy’s capital structure, promoting enhanced liquidity for future investments and share repurchase plans.

Additionally, industry analysts observe Etsy’s PE ratio at 34.39, reflecting investor expectations for growth. The decision to offload Depop to refocus efforts on its principal marketplace and explore agentic commerce initiatives underscores Etsy’s strategic reorientation toward sustainable growth. Importantly, the strategic persistence in technological partnerships enhances prospects of retaining competitiveness within an evolving digital commerce landscape.

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Conclusion

Etsy’s recent divestment of Depop marks a pivotal shift, reflecting strategic finesse in capital allocation and market focus. With the infusion of $1.2 billion from the sale, Etsy is poised to bolster its core business operations, thereby setting a foundation for sustainable profitability. The company’s engagements with tech giants and the accelerating AI-driven marketplace evolution highlight its commitment to maintaining market relevance. As millionaire penny stock trader and teacher Tim Sykes says, “You must adapt to the market; the market will not adapt to you.” This quote aptly underscores Etsy’s approach in honing its strategy to align with market demands and trends. Continual enhancement of personalized consumer experiences coupled with efficient marketplace dynamics is likely to retain trader confidence, further reflected in recent analyst upgrades. Moving forward, Etsy’s consolidation within its primary marketspace and the prudent application of share buybacks should instill stability and attract trader interest. The stock’s favorable performance trajectory signals an optimistic outlook, encouraging management to capitalize on emerging e-commerce trends.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”