Etsy, Inc. (NYSE:ETSY) stock surged Thursday after the company paired a $1.2 billion Depop divestiture with a fourth-quarter earnings beat.
The rally was likely magnified by elevated short interest, with 21.27% of the public float sold short, signaling substantial bearish positioning that may have fueled a squeeze.
The company reported fourth-quarter earnings per share of 92 cents, beating the analyst consensus estimate of 85 cents.
Quarterly sales of $881.64 million (+6.6% year-over-year excluding Reverb) came in slightly below the Street estimate of $884.90 million.
On an as-reported basis, including Reverb’s fourth-quarter 2024 revenue of $24.9 million, consolidated revenue was up 3.5% Y/Y.
Quarterly Metrics
For the Etsy marketplace, GMS was $3.29 billion, up 0.1% Y/Y, and down 1.0% on a currency-neutral basis.
GMS transacted on the Etsy App grew 6.6% Y/Y, and represented approximately 46% of GMS.
The take rate reached 24.5%, with revenue growth driven by continued strong consolidated on-site ads performance.
Active buyers …