|Bid||59.05 x 1100|
|Ask||59.09 x 800|
|Day's Range||58.53 - 59.80|
|52 Week Range||38.02 - 73.35|
|Beta (3Y Monthly)||0.77|
|PE Ratio (TTM)||68.86|
|Earnings Date||Nov 4, 2019 - Nov 8, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||75.67|
Etsy Inc (NASDAQ: ETSY ) has received a new initiation of coverage. The Analyst Nomura Instinet analyst Mark Kelley initiated coverage on Etsy's stock with a Buy rating and a $70 price target. The Thesis ...
Shopify (NYSE:SHOP) stock is down 20% in the past month. SHOP stock slid from $389.70 at the open on Sept. 3 to $310.36 at the close on Oct. 2.Prior to that, SHOP stock had been rallying tremendously. SHOP stock nearly tripled in value from January to August. As a result, the shares reached a frothy valuation.As I wrote in my July column, "Short term, SHOP stock is a sell. A massive pullback could signal a buying opportunity to place a bet on SHOP's future prospects. But until then, investors should be cautious before chasing this growth story."InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? I was a little early. The shares went up another 27% before starting their retreat back down to the $300 price level.While I believe SHOP remains overvalued, I can see the stock treading water or rallying higher.But here's why I'm on the sidelines with Shopify stock: Source: justplay1412 / Shutterstock.com Will SHOP's Fulfillment Push Move the Needle?SHOP is rapidly moving into fulfillment.The company believes that will help it compete more effectively with Amazon (NASDAQ:AMZN). But fulfillment is not a slam-dunk. The fulfillment industry is a low-margin business. Since it also has high startup costs, SHOP could lose big if this bet doesn't pay off. Considering the company has yet to generate a profit from its core business, it could be getting in over its head.In tandem with this fulfillment push, Shopify is acquiring 6 River Systems. 6 Rivers provides automation solutions for warehouse/fulfillment operations. The analyst community is positive on this deal. Canaccord's David Hynes believes the acquisition can jump-start SHOP's fulfillment strategy. He remains bullish on Shopify stock, setting a $385 price target on the name.Jeffries' Samad Samana believes another strength of the deal is that it brings two former Amazon execs into the fold. But Samana remains cautious, rating the stock a "hold." Piper Jaffray's Michael Olson is also positive on the acquisition, but remains "neutral" on Shopify stock, due to its valuation.Shopify's move into fulfillment has its pros and cons. But weighing catalysts against risks, I think SHOP stock remains highly overvalued. Let's take a closer look at the current valuation of Shopify stock. Even After Its Dip, Shopify Stock Remains OvervaluedEven compared to other growth stocks, SHOP is overvalued. Shopify's trailing enterprise value/sales (EV/Sales) ratio is 26.2. Here are the 12-month trailing EV/Sales ratios for some of Shopify's peers:Amazon: EV/Sales of 3.5Etsy (NASDAQ:ETSY): EV/Sales ratio of 8.9PayPal Holdings (NASDAQ:PYPL): EV/Sales ratio of 6.9Square (NYSE:SQ): EV/Sales ratio of 6.5Wix (NASDAQ:WIX): EV/Sales ratio of 8.1Perhaps comparing Shopify stock to AMZN, PYPL, and SQ is not an apples-to-apples contrast. But even among e-commerce platforms, Shopify's valuation is high. InvestorPlace columnist Mark Hake touched on this in a recent article. He pointed out that Shopify stock trades at a substantial premium to ETSY and WIX, even when comparing their forward sales.For the fiscal year that will end in December 2020, analysts, on average, estimate that Shopify's sales will be $2.06 billion. Based on its current enterprise value of $33.9 billion, SHOP trades at a forward EV/Sales ratio of 16.4. ETSY and WIX have forward EV/Sales ratios of 6.3 and 5.8, respectively.But SHOP continues to fly high in terms of growth. As its last quarterly results showed, its revenue continues to grow at a significant clip. The growth of e-commerce is definitely not over. But does it seem smart to buy SHOP stock now, when the company is entering the costly fulfillment business?The same thing could have been said about Amazon back in the mid-2000s. Back then, there was no guarantee that AMZN could parlay its success as a bookseller into a global retail juggernaut. Only time will tell if SHOP will achieve the same success. The Bottom Line on Shopify Stock: Its Future Is UncertainShopify's core software-as-a-service business is solid. Its competitive moat will enable it to sustain high growth, as its customers accelerate their pivot from bricks-and-mortar to e-commerce. But SHOP stock is not a buy at any price. At its current valuation, Sjopify stock seems frothy. Add in the new fulfillment build-out, and its future profitability continues to be uncertain.All bets are off with SHOP. The company's next quarterly results are due to be released in November. If the company can continue to generate 30%+ revenue growth, investors could dive into SHOP stock again.But buying SHOP today could be a costly bet. The best strategy for investors is to remain on the sidelines. Once the anticipated recession occurs, Shopify could be a screaming buy. Even if its growth is challenged in a tough economy, the company's long-term prospects may make it a compelling opportunity.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best ETFs for 2019: The Race Is a Little More Gnarly Now * 7 Next-Generation Healthcare Stocks to Buy * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? The post Down 20% in a Month, Shopify Stock Isn't Worth Buying Yet appeared first on InvestorPlace.
Etsy rose after shares of the online craft marketplace were initiated with a buy rating and $70 price target at Nomura. The price target represents a potential 25% upside from the stock's closing price Thursday of $55.82. Nomura said that the market hasn't factored in Reverb's impact on Etsy's bottom line.
(Bloomberg) -- Free shipping has delivered a lot of bulls to Etsy Inc.Wall Street has warmed up to the e-commerce company of late as the online marketplace’s offer of free shipping on orders of more than $35 and other initiatives are perceived as growth catalysts.In the latest positive call, KeyBanc Capital wrote that the change should be an important long-term driver of gross merchandise sales as “baskets close to the $35 free shipping threshold tend to see incremental purchases in an effort to hit the hurdle.”Analyst Edward Yruma affirmed his overweight rating and $90 price target on the stock in a note dated Oct. 2, saying he’s “increasingly confident” about the company’s long-term growth opportunity following a meeting with Etsy CEO Josh Silverman.Etsy rose 2.6% on Thursday.KeyBanc’s comments were echoed by Canaccord Genuity, which earlier this week wrote that the company’s initiatives were driving “robust growth and improving profitability.” Analyst Maria Ripps called free shipping “an important step in bringing Etsy’s platform closer to par” with other e-commerce leaders like Amazon.comNot only will free shipping improve “consumer perception around the platform,” but she estimated that it could add upside of 3%-5% upside to 2020 estimates for both revenue and adjusted Ebitda. The company’s Etsy Ads initiative, she added, “should ultimately attract high affinity customers with strong repeat purchase behavior.”According to data compiled by Bloomberg, consensus estimates for Etsy’s 2020 revenue have risen by about 2.5% over the past three months; the free shipping initiative was announced July 9.Free shipping and Etsy Ads have also prompted at least two analyst upgrades over the past month, with both RBC Capital Markets and Wedbush specifically citing the initiates as their lifted their ratings to the equivalent of a buy.Currently, 13 firms recommend buying Etsy, compared with the two analysts who have a hold-equivalent rating on the stock. None of the firms tracked by Bloomberg recommend selling the shares, while the average price target of $77 implies upside of nearly 40% from current levels.Shares of Etsy are up more than 16% this year, though the stock is down more than 20% from a record close that was hit in early March.The next trading catalyst for the stock could come in early November, when the company is expected to report third-quarter results. Wall Street anticipates revenue growth of nearly 30%, according to data compiled by Bloomberg. Gross merchandise sales are seen coming in at $1.13 billion, which represents year-over-year growth of about 22%, according to a Bloomberg MODL estimate.\--With assistance from Crystal Kim.To contact the reporter on this story: Ryan Vlastelica in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Will DaleyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Recent discussion with Etsy Inc (NASDAQ: ETSY ) CEO Josh Silverman highlighted the company’s long-term growth opportunity, although there are both tailwinds and headwinds in the near term, according to ...
Mega stocks may suck up all the headlines, but there are deals and opportunities to be found among the smaller companies, as well. We’ve used TipRanks’ Trending Stocks tool to find three stocks that top analysts are highlighting right now.For investors, these stocks offer real advantages: high upside potential and lower cost of entry, based on solid positions in strong niches. These are companies primed to take off as the market continues to gain (the S&P 500 is up 3.6% in the last 30 days). Let’s find out what the analysts have to say about them. Exact Sciences CorporationIn the world of cancer treatment, early detection and prevention are worth more than the most cutting-edge treatment. Exact Sciences (EXAS – Get Report), established in 1994, focuses on early detection of colorectal cancer, and its first product, the at-home screening test Cologuard, was approved by the FDA in 2014.Exact Sciences received more good news from the FDA this month, as the agency expanded the age-range for Cologuard users. It had previously been approved for patients over 50; now, it has been approved for at-risk patient over 45. The FDA was not expected to make this move until next year, and the fast-tracked approval is expected to boost Cologuard sales. In a statement after the announcement, CEO Kevin Conroy said, “We are giving health care providers a sensitive, noninvasive option that has the potential to help combat the rise of colorectal cancer rates among this younger group of people.”Leerink Partners analyst Puneet Souda noted of the move, “With an additional 19M patients to their overall population, EXAS is adding a $3B market opportunity, according to previous management commentary, which we believe offers additional upside to their $800M - $810M revenue guide for FY19.” While Souda declined to set a specific price target, he did add, “We remain Outperform-rated on EXAS given our view that Cologuard remains highly underpenetrated in a 100M+ patient strong market.”5-star analyst Mark Massaro, from Canaccord Genuity, agrees that the future is bullish for EXAS. He writes, “EXAS this morning announced FDA approval for Cologuard for average- risk individuals ages 45 and older, expanding on its previous indication of age 50 and older. By our estimates, this adds an incremental $3B TAM for EXAS, summing to a Cologuard TAM of $18B and ~106M Americans… We reiterate EXAS as a top pick and our $135 PT.” Massaro’s $135 price target implies an upside of 38% for the stock.The analyst consensus on EXAS is a Strong Buy, based on a unanimous 11 buy ratings. Shares are trading for $98, and the average price target of $132 suggests a 34% upside potential. Teladoc Health, Inc.Cologuard puts one particular screening test at the patient’s convenience. Teladoc (TDOC – Get Report) uses digital communications to bring the whole office appointment directly to the patient. The company offers on-demand remote medical care, using videoconferencing to provide non-emergency services for ear-nose-throat issues, prescription refills for non-addictive medications, lab referrals, and basic medical advice and diagnoses. Teladoc describes it as “remote house calls by primary care doctors.”The oldest telehealth company, Teladoc started out in 2002 and went public in 2015. The company has expanded its customer base consistently, boasting 8.1 million members in 2014 and 10.6 million in 2015. It has since nearly doubled, and now claims over 20 million members and 95% customer satisfaction.Teladoc may face increased competition in the near future, as Amazon (AMZN – Get Report) announced this week that it will open a pilot program, offering similar services, in the Seattle area. The prospect of competition from the deep pockets of Amazon prompted a dip in TDOC shares, with some analysts saying that the slip was a buying opportunity.After the announcement. Canaccord Genuity analyst Richard Close reiterated both his buy rating on the stock and his $95 price target. He said, “We would use any weakness in Teladoc shares as a buying opportunity. The Amazon news is likely to unsettle some investors, but virtual care remains in the early stages and Teladoc continues to be the domestic and global leader.” His price target implies an impressive 36% upside for Teladoc.Lisa Gill, from JPMorgan, also takes a bullish stand on TDOC, basing her view on investor meetings recently hosted by company management. She wrote of the meetings, “While nothing materially new came out of them, management's positive commentary and tone again served to reinforce our bullish view on the outlook. We continue to see a significant amount of runway in the telehealth market. Teladoc is very well positioned as the only comprehensive virtual care delivery solution.” Gill’s $83 price target indicates her confidence in a 19% upside.Overall, TDOC shares get a Strong Buy consensus, based on a unanimous 11 buys. The average share price of $86 suggests a 25% upside from the current trading price of $68. Etsy, Inc.Etsy (ETSY – Get Report) fills the online store niche for arts and craft, heavily emphasizing handmade or vintage and collectible items. The site also features supplies for crafters of every sort. Etsy’s online store attracts a wide range of sellers, offering everything from toys to quilts to art and photography.Etsy has announced three new initiatives this summer, making it a more attractive platform for sellers and a more profitable stock for investors. In July, Etsy acquired music marketplace Reverb for $275 million. CFO Rachel Glaser said earlier this year that Etsy is “interested in marketplaces that have similar business model characteristics to us but might have different products and different buyer segments in completely different ways.” The Reverb acquisition underlines that stance.Also in July, Etsy announced that sellers will be able to guarantee free shipping for orders over $35, a move that will surely be popular with customers, and later in the summer the company unveiled a sellers’ tool, Etsy Ads, which is expected to boost bottom line revenue.RBC Capital’s Mark Mahaney is encouraged by Etsy’s recent moves. He upgraded his outlook on the stock from neutral to buy and boosted his price target by 8% to $68. He wrote, “Over the past two months, Etsy has announced three initiatives we believe could have a mid-to-long-term positive impact on Etsy’s business and upside… Etsy is becoming more special.” Mahaney’s price target suggests an upside of 25%.Also giving Etsy a buy rating is KeyBanc’s Edward Yruma. Yruma studied the free shipping initiative, and wrote, “Feedback in the Etsy forums has been decidedly mixed (as expected), but we believe that this will serve as a strong LT GMS driver… We believe Etsy still has several visible self-help initiatives, and is becoming a much better retailer. The new management’s initiatives to grow GMS and a renewed focus on operational discipline should position Etsy well going forward.” Yruma’s $90 price target implies a robust 66% upside for the stock.Etsy’s Strong Buy consensus rating comes from 10 buys and 1 hold. The stock is selling for $54, and the average price target suggests an upside potential of 39%.Visit the Trending Stocks page at TipRanks, and find out which stocks the analysts are watching now.
(Bloomberg Opinion) -- EBay Inc. has been a resilient internet pioneer and also a confounding one. Now a new leader will have to solve the riddle.The company announced on Wednesday that Devin Wenig, the chief executive officer since 2015, had stepped down. The company’s chief financial officer, a longtime EBay employee, was named interim CEO while the company hunts for a permanent successor. Ebay shares dipped nearly 2% on the news.EBay is an oddball of the internet economy. It’s both a success with more than $90 billion in merchandise and event tickets sold each year, and it has vast unfilled potential. In the U.S., EBay’s market share of online shopping is second only to Amazon.com Inc., although it is a distant No. 2. Its classified websites are popular in several countries, and the company generates most of its revenue outside its home country. But while online retailing is a naturally growing sector as people shop more from their sofas and smartphones, EBay has stopped growing. The dollar value of transactions on its main shopping businesses started to shrink this year.EBay’s central problem won’t be easy to solve by a new CEO. People who shop on EBay tend to love it, but a swath of online shoppers never think about EBay at all. This conundrum has vexed several administrations of EBay leaders. And across the industry, changing consumer habits are turning retail shopping upside down, and EBay hasn’t successfully capitalized on emerging niches or trends. Online shopping insurgents such as Etsy Inc. in handmade goods, Goat in sneakers and streetwear and the RealReal Inc. in consignment, have encroached on what should be EBay’s natural turf.That was a big reason Elliott Management Corp., the activist investor, went public with its criticisms about the company early this year, landed seats on the board and urged a review of the company’s structure and operations. On Wednesday, EBay said those reviews are continuing.EBay has made deliberate and pragmatic choices not to chase hot e-commerce trends or low-margin areas such as groceries and instead focus on its strengths: its loyal customers, global reach and a business model with better economics and less risk than many online retailers. The approach is sensible, but EBay has been missing opportunities as online shopping reshapes the $20 trillion in annual global retail spending. Investors had lost faith in the company’s approach.It’s not clear a new CEO will have fresh solutions to what EBay should be. It seems more likely now that EBay will ditch some of its assets, including its StubHub event ticket business and its network of classifieds websites. The fees for merchants that sell on EBay are also low compared with those charged by Amazon and other competitors, and that may be an area where EBay can dial up revenue growth — although it risks turning off merchants the company needs to thrive.Wenig tweeted on Wednesday that it became clear he wasn’t “on the same page as my new board.” That would be the board including two people added at Elliott’s request. It will be interesting to see whether the investment firm will see EBay through only long enough for a potential transaction to jettison StubHub or other assets.EBay is a test of whether Elliott can help steer a tricky operational challenge, not just nag for a stock-boosting rearrangement of deck chairs. No matter what, EBay’s decision to change CEOs shows that the company’s sensible approach to e-commerce isn’t working, and it’s time to take greater risks to capitalize on changing shopping habits. To contact the author of this story: Shira Ovide at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shira Ovide is a Bloomberg Opinion columnist covering technology. She previously was a reporter for the Wall Street Journal.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
BROOKLYN, N.Y., Sept. 24, 2019 /PRNewswire/ -- Etsy, the global marketplace for unique and creative goods, today announced the winners of the first-ever, global Etsy Design Awards with sellers from the UK, US, Greece and Israel taking the top prizes in the search for the best of Etsy. London-based designer Sian Zeng secured the $15,000 Grand Prize with her interactive magnetic wallpaper Combining fairytale-inspired, hand-drawn illustrations with an inventive magnetic lining, Sian's best-selling dinosaur wallpaper wow'ed the celebrity panel of judges.
E-commerce company Etsy has introduced several new business initiatives as it seeks to drive long-term value. But will it propel sustainable, profitable growth and boost Etsy stock?
During the Lightning Round of Thursday night's "Mad Money" program, a caller asked Jim Cramer about Revolve Group . Revolve has not been trading for long, but we have good price history to work with on Etsy, the Brooklyn, N.Y., online marketplace for craft supplies and vintage goods. In the daily bar chart of Etsy below, we see that prices rallied from last October to early March.
Etsy rises after RBC lifts its rating on the stock to outperform from sector perform, citing the company's free shipping offer as well as more recent advertising push, which it says is helping generate sales.
Etsy stock (ticker: ETSY), which closed Thursday at $59.07, was up 1.6% to $60.01 around 5 p.m. Eastern time as RBC Capital Markets analyst Shweta Khajuria upgraded the shares to Outperform from Sector Perform, boosting her price target by $5 to $68, below FactSet’s average near $77 but 15% above the close. Wall Street is mostly bullish on Etsy—of 13 ratings tracked by FactSet, 11 are Buys, and there aren’t any Sell ratings—though the stock has fallen in the third quarter. Khajuria agrees—and thinks a recent push to encourage more sellers to offer free shipping and an advertising offering can boost both revenue and gross merchandise sales, the company’s term for the value of stuff sold on its platform.
Etsy Inc. said Thursday it is issuing $650 million in convertible debt and will use part of the proceeds to buy back its shares. The arts and crafts online marketplace said it has priced the notes, which mature in 2026, at 0.125%. The company is expecting to raise about $639.3 million in the offering and will use about $124.5 million for share buybacks. The remaining proceeds will be used for general corporate purposes, including further buybacks, product development, marketing and potential acquisitions. Shares were not active premarket, but have gained 25% in 2019, while the S&P 500 has gained about 20%.
BROOKLYN, N.Y., Sept. 19, 2019 /PRNewswire/ -- Etsy, Inc. (ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced the pricing of $650.0 million aggregate principal amount of 0.125% convertible senior notes due 2026 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The notes will be senior, unsecured obligations of Etsy and will accrue interest payable semiannually in arrears on April 1 and October 1 of each year, beginning on April 1, 2020, at a rate of 0.125% per year. The initial conversion rate will be 11.4040 shares of Etsy's common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $87.69 per share).
BROOKLYN, N.Y., Sept. 18, 2019 /PRNewswire/ -- Etsy, Inc. (ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced that it intends to offer, subject to market conditions and other factors, $650.0 million aggregate principal amount of convertible senior notes due 2026 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The notes will be general unsecured obligations of Etsy and will accrue interest payable semiannually in arrears. The notes will be convertible into cash, shares of Etsy's common stock or a combination of cash and shares of Etsy's common stock, at Etsy's election.