10 Cheap Internet Stocks to Buy According to Hedge Funds

3. Etsy, Inc. (NASDAQ:ETSY)

Forward P/E: 9.46

Number of Hedge Fund Holders: 58

Etsy, Inc. (NASDAQ:ETSY) operates two-sided online marketplaces that connect sellers and buyers worldwide. In addition to its core Etsy marketplace, the company also comprises Reverb Holdings, Inc. (Reverb), a musical instrument marketplace, and Depop Limited (Depop), a fashion resale marketplace.

The company reported record revenue of $2.8 billion for fiscal year 2024, up 2% year over year. It also delivered strong profitability, with adjusted EBITDA of $782 million and margins of 27.8%.

In 2024, Etsy, Inc. (NASDAQ:ETSY) transformed by temporarily shifting its focus to holistically better customer experiences based on quality and reliability instead of near-term conversion. The company’s investments in this domain are expected to yield positive results, as it is now building on this improved foundation for 2025 and beyond. Its median price target of $46.80 implies an upside of 15.38% from current levels.