Why Etsy Inc. (ETSY) Stock Is Climbing Now

We recently published a list of 10 Stocks Grow Firmer Despite Mixed Market Sentiment. In this article, we are going to take a look at where Etsy Inc. (NASDAQ:ETSY) stands against other stocks that grow firmer despite mixed market sentiment.

The stock market kicked off the first trading day of the week on a lackluster note, with major indices finishing mixed as it struggled to rebound from Friday’s bloodbath.

The Dow Jones was the sole gainer among the main indices, eking out a 0.08-percent gain. In contrast, the S&P 500 and the tech-heavy Nasdaq both fell 0.50 percent and 1.21 percent, respectively.

Meanwhile, ten companies registered strength, albeit posting only modest gains. This article details the reasons behind their performance.

To come up with Monday’s top gainers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A young woman shopping for a vintage fashion item online.

Etsy Inc. (NASDAQ:ETSY)

Etsy snapped a three-day losing streak on Monday, adding 3.86 percent to end at $53.24 apiece as investors resorted to bargain-hunting to take advantage of its cheap valuation.

Additionally, Needham & Company LLC’s report maintaining its “buy” rating for the company helped fuel investor sentiment on the back of a strong earnings performance last year.

According to ETSY, net income increased by 56 percent during the period at $129.9 million from $83 million year-on-year, while revenues inched up by 1.2 percent to $852 million from $842 million.

However, 2024 saw experienced lower gross merchandise sales (GMS) and number of active buyers for the company.

Consolidated GMS declined by 6.8 percent to $3.7 billion, while GMS from its marketplace dropped 8.6 percent to $3.3 billion as a result of pressures on consumer discretionary product spending, challenging year-on-year comparisons in a shortened holiday season, category mix, and a highly promotional and competitive retail environment.

Overall, ETSY ranks 8th on our list of stocks that grow firmer despite mixed market sentiment. While we acknowledge the potential of ETSY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as ETSY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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