New York, February 20, 2026, 09:52 EST — Regular session
- Etsy shares push higher, building on yesterday’s jump that followed news of the planned Depop sale and fresh quarterly results.
- The company is targeting first-quarter gross merchandise sales between $2.38 billion and $2.43 billion.
- Attention turns to how demand holds up across the main Etsy marketplace, as well as the timing of the Depop acquisition.
Etsy shares climbed roughly 3.6% to $49.85 in early Friday trading, building on gains following the company’s latest quarterly update and its announcement to sell the resale app Depop.
Etsy’s hoping this will reassure investors who’ve watched its main marketplace wobble as demand for gifts and home goods stumbled.
Depop’s sale is a reset. The move brings in cash, sharpens the narrative, and shifts attention to Etsy’s core question: can it drive growth on the main platform without more buyouts?
eBay is set to acquire Depop for roughly $1.2 billion in cash. Etsy, announcing the deal, said it anticipates closing in the second quarter. “We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us,” CEO Kruti Patel Goyal said in the statement. (Etsy, Inc.)
Etsy turned in fourth-quarter revenue of $881.6 million on Thursday, with gross merchandise sales at $3.59 billion, excluding Reverb’s earlier divestiture from the year-over-year numbers. The company’s take rate came to 24.5%, while adjusted EBITDA hit $222.5 million. Etsy closed out the quarter holding $1.8 billion in cash and investments. “We ended the year with solid results, in-line with or better than our expectations,” CFO Lanny Baker said. (Etsy, Inc.)
Etsy, Inc. dropped its earnings release in an 8-K filed Thursday. (Etsy, Inc.)
The stock climbed roughly 10% on Thursday, with investors shrugging off the revenue shortfall and zeroing in on the Depop acquisition and what it could mean for margins, Reuters reported. “Depop had largely been overlooked by investors, so the valuation Etsy secured appears to have come as a positive surprise,” said CFRA analyst Arun Sundaram. (Reuters)
Right now, headline EPS isn’t the big story—it’s the core Etsy marketplace that’s in focus. Traders are scrutinizing active buyer numbers, conversion rates, and the outlook for ad revenue holding steady without squeezing sellers.
eBay shares rose roughly 1.7% in early Friday trading. Amazon edged up 0.6%. Shopify hovered near flat.
Even so, things could swing the other way. Etsy’s forecast banks on shoppers maintaining today’s spending pace. If the macro picture weakens or rivals online get bolder, demand could slip, and that “slight growth” narrative might be a stretch.
Execution risk hangs over the Depop exit, with regulatory clearance still pending. If the process drags into the latter part of the year, it could muddy comparables and leave investors uncertain about what “core Etsy” growth actually is.
