Paul Singer’s Latest Portfolio: Top 10 Stock Picks

7. Etsy, Inc. (NASDAQ:ETSY)

Elliott Management’s Equity Stake: $264.45 Million

Number of Hedge Funds Holding Stakes: 58

Etsy, Inc. (NASDAQ:ETSY) is an internet retail giant that operates a global online marketplace where people can buy, sell, make, and collect unique, handmade, vintage, and craft supply items. It connects independent sellers with millions of buyers through the Etsy marketplace. Its stock has been under pressure after the company delivered disappointing financial results for the holiday quarter, as it also missed expectations for gross merchandise.

Etsy, Inc. (NASDAQ:ETSY) delivered fourth-quarter 2024 revenue of $852.2 million against the $861.8 million analysts expected as it faced significant headwinds, including a pullback in consumer spending. Nevertheless, it posted earnings per share of $1.03 against 93 cents a share expected. Gross merchandise sales sold on the platform fell 6.8% year-over-year to $3.74 billion.

The disappointing financial results are one of the reasons the stock has plunged and recorded a new 52-week low. Etsy, Inc. (NASDAQ:ETSY) warned that it expects gross merchandise to decline in the first quarter at a rate similar to 6.8% in the fourth quarter, which has also rattled the markets. To revert to its origins and encourage customers to return, Etsy has been attempting to stop the proliferation of mass-produced, generic products from resellers on its marketplace. Along with a loyalty program, it has also introduced a giving feature to offer customers tailored suggestions.