Skip to main content

Market Overview

Roth Still Selling Etsy Despite Pattern Launch

Share:

Shares of Etsy Inc (NASDAQ: ETSY) were trading up roughly 1.8 percent on Wednesday afternoon, even though Roth Capital reiterated a Sell rating and $6.00 price target on the stock. Analyst Darren Aftahi explained that, while the addition of Pattern to the company’s seller services portfolio could help create a new recurring revenue stream and, consequently, GMS (gross merchandise sales) growth, the service’s field is already quite crowded.

For instance, Shopify Inc (NYSE: SHOP) “has a strong foothold in for SMBs,” the report explicated. Furthermore, Aftahi noted, “It appears from initial launch that Pattern does not support social commerce the way SHOP’s platform does.”

What Is Pattern?

Pattern is Etsy’s new seller service; a paid tool that allows sellers to port their listings into standalone e-commerce sites. This allows for easier management of inventory, order processing and shipping for only $15 a month.

Related Link: The 5 Most Notable Insider Sells Of The Week

One of the main benefits for Etsy might come from increased stickiness.

And, while analysts at Roth Capital point out that Shopify does not focus on Etsy’s “core niche,” its offering differentiates itself from Etsy’s in its social commerce tools. “We believe social will become a growing channel for commerce for enterprises, both large and small. It does not appear that Pattern initially offers social-enabled commerce. However, over time those tools could be built in,” the report concluded.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Latest Ratings for ETSY

DateFirmActionFromTo
Jan 2021BTIGMaintainsBuy
Jan 2021Loop CapitalMaintainsBuy
Jan 2021KeyBancMaintainsOverweight

View More Analyst Ratings for ETSY
View the Latest Analyst Ratings

 

Related Articles (ETSY + SHOP)

View Comments and Join the Discussion!

Posted-In: Analyst Color Short Ideas Price Target Reiteration Analyst Ratings Movers Tech Trading Ideas

Latest Ratings

StockFirmActionPT
WDAYNeedhamMaintains290.0
AAXNNeedhamMaintains190.0
LNTHSVB LeerinkMaintains25.0
CRMPiper SandlerMaintains240.0
KURASVB LeerinkMaintains40.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com