Etsy’s stock dropped sharply on Wednesday despite the e-commerce platform reporting stronger-than-expected third-quarter earnings.
The decline came as the company announced a major leadership shakeup, with Chief Growth Officer Kruti Patel Goyal stepping in as the new CEO, replacing long-time chief Josh Silverman.
The company’s shares fell more than 10% in early trading, as Wall Street digested a mix of solid financials but weaker marketplace trends.
While Etsy topped analysts’ expectations for both revenue and earnings, the platform saw a slowdown in active buyers and sellers, raising concerns about future growth momentum.
According to Etsy’s quarterly report, gross merchandise sales (GMS) came in above forecasts, but management noted ongoing challenges in retaining pandemic-era customers.
CEO-elect Goyal, who also oversees Depop—Etsy’s secondhand fashion marketplace—will be tasked with revitalizing growth and expanding Etsy’s reach through AI-driven personalization and product discovery tools.
Outgoing CEO Josh Silverman, who has led Etsy since 2017, will remain with the company during the transition period.
Under his leadership, Etsy grew from a niche crafts marketplace into a global e-commerce player, but recent quarters have seen rising competition from platforms like Amazon Handmade, Temu, and Shein.
“We believe we’re entering a new era where AI can help buyers find exactly what they’re looking for while empowering sellers to showcase their creativity more effectively,” Goyal said in a statement.
Despite the leadership optimism, investors appear cautious about Etsy’s near-term outlook.
Analysts warn that declining user engagement could limit growth until the company successfully integrates AI technologies and new marketplace strategies.
As Etsy moves into 2025, all eyes will be on whether Goyal can turn around user growth and navigate the increasingly competitive e-commerce landscape.
Also Read
Can Nvidia Really Hit a $5 Trillion Valuation? Analysts Weigh In
WeBuyCars Shares Plunge: What’s Behind the Sudden 14% Drop on the JSE?