Cantor Fitzgerald’s Top Internet Stocks: Best Stocks To Buy According To $13.2 Billion Firm

16. Etsy, Inc. (NASDAQ:ETSY)

Number of Hedge Fund Holders In Q2 2024: 36

Share Price Target Upside: -3%

Cantor’s Rating: Neutral

Cantor’s Share Price Target: $50

Etsy, Inc. (NASDAQ:ETSY) is a specialty eCommerce company that focuses on selling hard to find and specialty items. This creates a double edged sword for the firm since while it provides it with a niche market in which Etsy, Inc. (NASDAQ:ETSY) can dominate, it also exposes the firm to a highly cyclical market that only does well when inflation is dropping and consumer spending is high. Consequently, Etsy, Inc. (NASDAQ:ETSY)’s shares are down by 33% year to date and have lost 16.41% over the past year as investors wait for the economy to improve before betting on the firm again. However, Etsy, Inc. (NASDAQ:ETSY) is also trying to diversify its business, and these initiatives are key to its hypothesis. The firm is focusing on onsite adds to further monetize its sellers, operating a gift mode to capitalize on its strength of specialty items with a high volume opportunity, and expanding users’ ability to make payments on its platform.

ClearBridge Investments mentioned Etsy, Inc. (NASDAQ:ETSY) in its Q1 2024 investor letter. Here is what the firm said:

“Online marketplace Etsy also saw weaker performance as consumer preferences for goods lagged market expectations. However, we think there is substantial opportunity for the company to reaccelerate growth and increase margins as it extracts greater economic rents from its two-sided marketplace for artisanal goods due to commanding market share, lack of direct competition and support from new activist investors.”