Etsy share prices triple to all time high during COVID-19 pandemic
Etsy’s stock price has more than tripled since mid-March and currently is at a record high making it amongst the far and few retail success stories during the Coronavirus outbreak.
The online marketplace for independent sellers has seen a drastic turnaround since March when its share value soared by more than half over coronavirus fears.
In early April the retailer called on its network of sellers and makers to “start making face masks” to cater to a growing demand.
A week later Etsy reported that buyers were searching face masks online an average of nine times per second since the announcement, totalling over two-million searches.
Throughout the rest of April, the marketplace, which charges users a listing fee for each item and takes a small commission on sales, sold over 12 million masks worth a total of $133 million, with its non-mask sales also plummeting by 79%.
This boom in sales has meant its share price has more than tripled to an all-time high of $101.22, following a 5.1% rise on Tuesday.
This follows after RBC Capital Markets significantly increased its price target from $79 to $117, while Goldman Sachs increased its target from $88 to $120.
A survey conducted by RBC revealed that 82% of respondents intend to spend more on Etsy over the next year, while Goldman noted a more than 100% year-on-year increase in Etsy app downloads in June.
Jefferies said that the rise in mask sales has “helped introduce its broader offerings to new shoppers”, and that a “rebound in categories relating to social events” would help offset falling mask sales.
RBC also predicted that sales for 2021 would continue to increase, jumping 22% from 2020 and pointing to healthy growth for the company long outlasting the global lockdown.