Can ETSY Sustain Top-Line Growth?

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, its Investor Class fund ARTMX returned -2.43%, Advisor Class fund APDMX posted a return of -2.42%, and Institutional Class fund APHMX returned -2.41%, compared to a return of -0.65% for the Russell Midcap Growth Index. Sector allocation dragged the fund’s relative performance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

In the third-quarter letter, Artisan Partners discussed stocks like Etsy, Inc. (NASDAQ:ETSY). Headquartered in Brooklyn, New York, Etsy, Inc. (NASDAQ:ETSY) is an online marketplace. On November 16, 2022, Etsy, Inc. (NASDAQ:ETSY) stock closed at $119.72 per share. One-month return of Etsy, Inc. (NASDAQ:ETSY) was 22.87%, and its shares lost 58.76% of their value over the last 52 weeks. Etsy, Inc. (NASDAQ:ETSY) has a market capitalization of $15.047 billion.

Artisan Partners made the following comment about Etsy, Inc. (NASDAQ:ETSY) in its Q3 2022 investor letter:

“Etsy, Inc. (NASDAQ:ETSY) is the leading e-commerce marketplace for buyers and sellers of unique, hard-to-find products that are “handmade, vintage, or a craft supply.” We believe the company has a long runway for continued top-line growth given its large addressable market and distinct product assortment. In addition, we have been impressed with the operational progress this management team has made since taking the helm in 2017. While Etsy’s longer term profit cycle momentum has been disrupted by a shrinking consumer wallet (40-year high inflation) and a shift to in-person experiences, the company proved more resilient than investors had expected in its recent earnings report (revenue and margins were better than expected, and a better-than feared outlook was provided). Examining the profit cycle opportunity through a longer term lens, we decided to add to our position during the quarter at an attractive discount to our PMV estimate.”

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Etsy, Inc. (NASDAQ:ETSY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Etsy, Inc. (NASDAQ:ETSY) at the end of the third quarter which was 29 in the previous quarter.

We discussed Etsy, Inc. (NASDAQ:ETSY) in another article and shared the biggest gig economy companies in the world by market cap. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.