10 Best Gig Economy Stocks To Buy

8. Etsy, Inc. (NASDAQ:ETSY)

Number of Hedge Fund Holders: 36

Etsy, Inc. (NASDAQ:ETSY) is an e-commerce company that operates two-sided online marketplaces that connect buyers and sellers. It facilitates the global gig economy by uplifting Etsy sellers and providing them with a platform to sell curated goods to buyers in the Etsy marketplace.

A lot of investors have been worried about Etsy, Inc. (NASDAQ:ETSY) in recent times since inflationary pressures resulted in the company’s gross merchandise sales falling by 3.2% in the second quarter. However, many are more optimistic about the company’s prospects in light of the September rate cut, which may lead to Etsy, Inc.’s (NASDAQ:ETSY) GMS getting a boost.

Another reason why Etsy, Inc. (NASDAQ:ETSY) is considered a valuable stock is the existence of its economic moat. The company has a power network effect by virtue of the two-sided nature of its marketplace. In the second quarter, it reported 96.6 million active buyers and 8.8 million active sellers. Considering the fact that Etsy, Inc. (NASDAQ:ETSY) has been growing its buyer count significantly over the years, the platform has become increasingly more valuable to sellers. As more sellers join to make use of this value, the buyers get a wider range of choices. All in all, the platform becomes more valuable for all stakeholders as time progresses.

Considering these factors, Etsy, Inc.’s (NASDAQ:ETSY) current valuation is also quite cheap. The stock has a P/E ratio of 12.6 relative to the sector median of 17.3, making it clear that the stock is trading at quite a discount relative to its competitors.

Etsy, Inc. (NASDAQ:ETSY) was seen in the 13F holdings of 36 hedge funds in the second quarter, with a total stake value of $1.2 billion. Elliott Management was the largest shareholder, holding 4,500,000 shares.