Etsy Stock Scores After Substantial Earnings Beat

The e-tailer has crafted an upswing to start 2020

Deputy Editor
Feb 27, 2020 at 10:34 AM
facebook twitter linkedin


Etsy Inc (NASDAQ:ETSY) announced its fourth quarter profits and the professional creatives have been in the money. Though the reported profits of 25 cents per share are 7 cents lower than the same quarter last year, Etsy out-shot Wall Street’s mean of expected profits of 16 cents per share. The reported revenue of $270.00 million beat out the estimated $264.92 million as well. The upbeat report has resulted in no fewer than five price-target hikes, including to $66 from $61 at Instinet. 

In response, the shares are up 11% today at $56.27. The e-tailer is on track to fill a late-October bear gap, and is up 26% year-to-date, impressive considering the broad market sell-off. Etsy stock had a brutal second half of 2019, culminating in an annual low of $39.76 on Dec. 5. However, in 2020, the stock has been steadily on an uptrend, toppling its 200-day moving average today for the first time since early August.

Despite the bull notes today, analysts have been bullish, with thirteen out of sixteen doling out “strong buy” or “buy” ratings. Plus, ETSY has outperformed the S&P 500 Index (SPX) by more than 17 percentage points during the past two months. 

A short squeeze could fuel additional gains. Short interest increased by 6.9% in the two most recent reporting periods, and accounts for a healthy 13% of ETSY's total available float, and 6.1 times the average daily trading volume.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners