Cantor Fitzgerald reduced its price target for Etsy (NASDAQ: ETSY) to $51 from $55 and left its rating at Neutral following the company's latest quarterly report. The firm emphasized a mix of constructive operational signs and lingering questions about the longer-term growth profile of the core marketplace.
On results, Cantor noted that Etsy's fourth-quarter gross merchandise sales (GMS) were broadly consistent with expectations, while EBITDA came in approximately 4% above the prior street estimates. The brokerage highlighted that core Etsy Marketplace GMS improved by 2 percentage points, landing at negative 1% year-over-year when excluding foreign exchange - which translates to roughly flat growth on a reported basis for the quarter. Over the trailing twelve months, Etsy sustained a gross profit margin of 72%.
In its forward guidance, Etsy projected core first-quarter GMS growth of about 3% year-over-year at the midpoint, attributing part of that expected lift to foreign exchange tailwinds and continued benefits from product and marketing initiatives. Management also outlined a pathway for the core marketplace to achieve positive growth for the full year 2026.
Cantor Fitzgerald noted corporate actions that could reshape Etsy's capital allocation. The sale of Depop to eBay is anticipated to generate roughly $1.2 billion in proceeds, which Etsy plans to direct toward investments in its core brand and share repurchases. Independent analysis referenced in the report suggested management has been an active buyer of shares.
The brokerage also observed tangible progress on product priorities - personalization, loyalty, and retention - which it linked to improved buyer metrics during the quarter. Despite these operational positives, Cantor prefers to remain on the sidelines until the firm has greater clarity on the long-term trajectory of Etsy's core growth.
Market pricing and headline financials were also noted. The stock, trading near $48.14 at the time cited, sits roughly 37% below its 52-week high. Separately, Etsy reported fourth-quarter earnings per share of $0.92, surpassing the $0.85 consensus, and recorded a quarterly revenue figure of $882 million, marginally under the $884.14 million expectation. The company described the quarter as delivering record revenue and an EPS beat, factors that the earnings call framed as evidence of financial resiliency.
Investors and analysts are continuing to monitor Etsy's performance, weighing the interplay of product-driven improvements, foreign exchange effects, the use of Depop sale proceeds, and the pace of buybacks against the need for clearer evidence of sustainable long-term growth in the core marketplace.