How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Etsy (ETSY) ten years ago? It may not have been easy to hold on to ETSY for all that time, but if you did, how much would your investment be worth today?
Etsy's Business In-Depth
With that in mind, let's take a look at Etsy's main business drivers.
Etsy operates as a leading e-commerce service provider, managing a two-sided marketplace platform at Etsy.com that connects creative entrepreneurs with buyers seeking unique, handmade, and vintage items. The company has established a strong international presence, with core operations spanning the United States, United Kingdom, Canada, Germany, Australia, and France.
In 2024, Etsy achieved total revenues of $2.8 billion, demonstrating its significant scale in the online marketplace sector. The company's revenue structure comprises two primary streams: marketplace activities and optional services. Marketplace revenues (72.1% of total revenues) dominated the financial performance, generating $2.02 billion. Services revenues contributed $787.5 million, accounting for 28% of the total.
The platform specializes in facilitating the sale of distinctive creative products across diverse categories, including homewares and home furnishings, jewelry and personal accessories, apparel, craft supplies, paper and party supplies, and beauty and personal care items. This focus on unique, artisanal products differentiates Etsy from mass-market e-commerce competitors.
Etsy.com serves as the company's primary value driver and cash cow, providing merchants with comprehensive tools to manage their online businesses effectively. The platform enables sellers to handle product listings and inventory management, process orders and payments, coordinate shipping logistics, and develop lasting customer relationships through a single integrated interface.
The company's robust technology infrastructure underpins its competitive advantage, enabling superior buyer and seller experiences while processing and analyzing vast amounts of customer data. This technological capability allows Etsy to continuously enhance marketplace performance and deliver personalized experiences to users.
GMS serves as Etsy's key growth metric, reflecting the health and expansion of marketplace activities. The services revenue segment derives from fees charged for optional seller services across both the Etsy and Reverb marketplaces. These optional services include advertising solutions that help sellers promote their products to targeted audiences and Etsy Shipping Labels, which streamline the fulfillment process while offering discounted shipping rates.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Etsy a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in October 2015 would be worth $6,501.36, or a gain of 550.14%, as of October 17, 2025, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 226.06% and the price of gold increased 252.43% over the same time frame in comparison.
Analysts are forecasting more upside for ETSY too.
Etsy is modernizing its marketplace with AI-powered tools, enhancing personalized shopping, elevating user engagement, and expanding mobile app traction. Its capital-light model, strong cash generation, and substantial liquidity provide flexibility for strategic investments and acquisitions. Growth in fashion resale and rising take rates, highlight Etsy's ability to monetize effectively while improving revenue quality through services like advertising and payments. Its shares have outperformed the industry year-to-date. However, ETSY continues to face headwinds with declining gross merchandise sales (GMS), shrinking active and habitual buyers, and weakening buyer spend. Stiff competition, rising tariffs, and reliance on seasonal discretionary spending add pressure, creating structural challenges that may limit long-term growth momentum.
Shares have gained 10.18% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Etsy, Inc. (ETSY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
