Etsy Shares Just Jumped 10%. But Smart Investors Are Paying Attention to Something Else
Short-term price movements -- down or up -- often fail to tell the full story, and while Etsy's results were quite encouraging, taking the sharp rise in share price at face value may blindside business-focused investors. Etsy's online marketplace has become a popular shopping destination for over 90 million buyers. The appeal of the exclusive and hand-crafted goods keeps those buyers coming back to Etsy's platform, and as buyers grow, they attract more sellers, creating a network effect and a key source of competitive advantage for Etsy.