In the wake of a mixed earnings report, Etsy stock fell Thursday as Wall Street debated e-commerce trends amid worries a recession could hit the U.S. economy.
Etsy, an e-commerce marketplace, reported first-quarter results after the market close Wednesday. Etsy earnings were 53 cents for the quarter ended March 31, down 12% from a year earlier. Also, revenue rose 11% to $640.9 million.
Analysts expected Etsy to report adjusted earnings of 51 cents a share on revenue of $622 million.
But the company also said it expects second-quarter revenue of about $615 million at the midpoint of its outlook. That was below estimates of $627 million.
Etsy stock fell 6.5% to close at 92.55 on the stock market today.
Etsy Stock: Revenue Outlook Light
Gross merchandise sales, or the dollar value of items sold in all Etsy marketplaces, rose 4.6% to $3.1 billion. That topped Wall Street estimates of $3.06 billion.
But consumers may not be spending as much, Oppenheimer analyst Jason Helfstein said in a note to clients
"Spend per buyer remains muted on reopening headwinds and macro (economic) pressure," he said.
The company is a provider of an online e-commerce platform where creators of arts and crafts, vintage items and other unique goods go to sell their products. Further, growth has slowed after the coronavirus emergency, which spurred more online shopping.
Heading into the Etsy earnings report, shares had retreated 17% in 2023. Meanwhile, Etsy stock holds a Relative Strength Rating of 30 out of a best-possible 99, according to IBD Stock Checkup.
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