Etsy Expands Ecommerce Acquisitions With Brazil-Based Elo7

The e-tailer acquired Gen-Z favorite Depop earlier in the month

Digital Content Manager
Jun 28, 2021 at 10:01 AM
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E-tail heavyweight Etsy Inc (NASDAQ:ETSY) is expanding its acquisitions even further, after acquiring Gen-Z favorite Depop earlier in the month. This time, Etsy is buying Elo7 -- a Brazilian online marketplace for handmade goods -- for $217 million in cash. The company will continue to be headquartered in São Paulo, and operate under its existing leadership team. 

ETSY is up 1.3% at $187.12 at last check. Late last week, the stock closed its May bear gap, and is now headed for its ninth-straight win. The stock also looks like it might be able to take out its 100-day moving average, which has acted as an area of pressure since April. Plus, year-over-year, it sports an impressive 82.5% lead. 

Analysts are optimistic on the e-tailer, with 12 of the 14 calling it a "strong buy," Plus, the 12-month consensus price target of $223.31 is a 20.8% premium to last night's close. 

An unwinding of shorts could put additional wind at the equity's back. Short interest rose 9% in the last two reporting periods, and now represents 5.7% of the stock's available float, or 2.3 days at its average daily pace of trading. 

 

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