Jim Cramer on Etsy: "The Franchise is Worth More Than the Stock"

Etsy, Inc. (NASDAQ:ETSY) is one of the 22 stocks Jim Cramer recently talked about. A caller asked if they should hold or sell their position, and Cramer replied:

“Oh no… I don’t want you to sell. Now this is a problematic story because I do believe there are execution issues, but I also think there’s a core belief that there’s a lot of value here, and that’s why this stock’s at $52 after this bad quarter, not at $40. I want you to hold onto it. And if it goes back to where it was at a low, I want you to buy more. The franchise is worth more than the stock.”

Etsy (NASDAQ:ETSY) operates online marketplaces that connect buyers with sellers of handmade, vintage, and unique goods. The company generates revenue through transaction fees, advertising, payment processing, shipping services, and various seller tools and programs. Polen Capital stated the following regarding Etsy, Inc. (NASDAQ:ETSY) in its Q1 2025 investor letter:

“We fully sold our position inEtsy, Inc. (NASDAQ:ETSY), an online marketplace for handmade goods, after disappointing Q4 results and a weak 2025 outlook. While the business is extremely high-quality, we’ve been disappointed by its growth. The platform fails to attract new buyers, and existing buyers are spending less. While we believe some may be macro-related, we are incrementally cautious on consumer discretionary spending as it has not recovered as we hoped. Etsy has been unable to overcome these challenges, nor has it been willing to invest to drive future growth and value creation. In the context of greater caution around our consumer exposure, we decided to move on to better opportunities.”

While we acknowledge the potential of ETSY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.