Like other companies that boomed during the pandemic, Etsy has seen business edge down from stratospheric highs when Americans en masse bought $740 million worth of masks from the site, as well as home goods to get through lockdowns and slower social life.
But in 2022, the value of items sold on Etsy hit $13.3 billion, down 1.3% from the prior year. While Etsy has succeeded in holding on to most of the gains made during the pandemic boom, softening business is not the only challenge CEO Josh Silverman faces these days. Wall Street is taking a closer, critical look at the longtime darling. In February, Citron Research, an investment newsletter, accused the marketplace of selling counterfeit goods. Meanwhile, the investment bank Jefferies last month said Etsy suffers from too much shopper turnover and downgraded the stock.
