Is Etsy Stock a Buy?
So. For dozens of listeners, let me just say up front. We are recording this early because I'm taking Tuesday's a personal day. So hopefully, the market is not doing Tuesday morning what it did late in the day, Sunday. And with so many companies reporting this week we thought we would do a a more detailed preview on three companies that are reporting later this week, and let's start with Oetzi. He's going to report after the bell on Wednesday. It's their third quarter report. This is a stock that was in the low thirties in March it's now around one hundred, forty dollars a share. What should folks be watching when it comes to? Yeah. You know it's really funny. I didn't realize that he had been on quite such tear. I guess just had really been paying that close attention to my portfolio and then one day open it up and I saw hey, wow, that's a nice little surprise. That's the best kind of surprise you guys have been doing. Okay. So I will say like first and foremost the dip when it comes to earning season in tweeted this out earlier and I think it's just something that I always want to remind myself. Because we get very hung up in the expectations game in for me. It's always. More beneficial to pay attention to to management and management hitting the marks that they said, not what the streets expecting right I mean management's should in theory the business better than anyone. So I think they're going to provide a little bit more of a realistic outlook and I think it's going to be a little bit more line with the way we invest. And so typically I go through for the companies that do sit guidance and offer guidance I I, look for the things that they say so. Evoke back to just a quarter ago. I mean the language in the call was. Was One of optimism yet caution, and they were really taking things one quarter time. So they did offer you know estimates for four some of the metrics that matter this quarter that gross merchandise sales, which is the the amount of money that's going through that network in the range of two point two to two point five billion that would be anywhere from eighty two to one hundred, percent one, hundred, ten percent up from from the same year ago looking for revenue of three, hundred, sixty, six, million to four, hundred, twenty, six, million would represent a range of growth between eighty five percent in one hundred and fifteen percent. and. So those are the things you know I look at first and foremost similar to just the sheer numbers. Now I think with that see another metric that really matters I mean this is this the Nice thing about the network it's a two sided network with buyers and sellers and they benefit from both. But if you look back. From. Just, Corrigo I mean they reported three point one, four, million active sellers sixty point three, million active. Now that represented growth from two point, eight, million and forty, seven, point seven, million respectively from the previous quarter. So you can see as the corridors go along. This is a business that continues to really benefit from the move towards ECOMMERCE right? I mean e commerce, it's not just an Amazon world anymore in in certainly been proving itself to be not only a great place for people to buy things but a great place for people to sell things and I've been really impressed with. The metrics the past couple of quarters in what they're selling in masks I mean it is just amazing. This is like the place to get a mask and all sorts of different kinds and like you know. All. Sorts of different types of our work involved with these just really interesting to see. This has been such a such a place. For people to go out there in really really sell something that clearly everybody needs in some capacity right now. But Yeah I think that those are the first things that I pay attention to when it to and. Just kind of get an idea of how they see this holiday season the shaping up as