In this guide, we will provide you with a comprehensive guide on how to buy Etsy stock in 2023. We will tell you where to buy Etsy shares commission-free and what factors to consider when investing in the online crafts marketplace. This guide will also discuss key Etsy finance metrics and its past price action.
But even before we get started, we must observe that Etsy stock has shed more than 40%+ of its value in the last 12 months. In light of this and the projected future performance for the company and the global economy, we will discuss whether Etsy shares are worth buying today.
Read on to learn how to buy Etsy stock, and if ETSY shares are even worth buying today.
Your capital is at risk. Other fees apply.
Let us break down this process and cover each step in detail below. We will start by introducing you to where to buy Etsy shares in 2023 before teaching everything you need to know about the eCommerce company and its share price action.
The ETSY Stock Buying Guide - Reviewed
Step 1: Decide Where To Buy ETSY Stock
Before discussing the best Etsy share brokers, it is important to understand the factors you need to keep an out for when searching for a broker that works for you. For starters, ensure their mode of operation aligns with your investing goals and strategy. For example, if you are an active trader, ensure their transaction processing speeds are fast and support scalping.
Other factors to consider include:
- Regulation and reputation: We recommend that you only register a trader account with a highly regulated broker. They should also have a solid reputation for reliability, stellar customer support, and efficiency.
- Fees: Check all the fees and commissions levied by a broker before registering a trader account. Assess the impact these would have on the profitability of your Etsy investment/trade. Only go for a broker with a competitive cost of trading.
- Platform and tools: Your preferred broker should also run a user-friendly trading platform. This should be appealing to both beginners and pro traders and integrate resources and tools that appeal to both classes of investors.
- Account minimums: Different brokers support varied deposit and trading minimums. Some do not support fractional share ownership. Confirm that you can raise the trading or deposit minimums set by a broker before creating a trader account with them.
- Security: Only register with a broker who is committed to keeping their platform and systems secure. For example, your preferred broker should maintain a segregated bank account for client deposits and insure these deposits with the likes of FDIC and FSCS. They should also control access to their clients' personal details and not share sensitive information with third parties.
Here are the two commission-free online brokerages that our analysts consider the best Etsy share brokers today.
eToro – Best Etsy Stock Broker for User Friendliness and Copy Trading
eToro is one of the most popular online stock trading platforms – as evidenced by its 25+ Million users. It is also one of the most regulated online trading platforms – with licenses from virtually all the top-tier regulatory agencies. Additionally, eToro is a multi-asset broker that lets you invest in Etsy and 3000+ other local and international shares, popular indices, commodities, ETFs, and even cryptocurrencies.
But these aren't the only reasons why we believe it to be the best Etsy shares broker. We also feature it here because of its user-friendliness. For starters, it operates an easy client onboarding process that lets you create a trader account in minutes. You are then ushered to one of the most navigable trading interfaces.
To start buying Etsy shares on eToro, you will need to deposit at least $10. The broker supports all the most popular payment methods and doesn't charge a deposit processing fee. You will also pay a 0% commission when buying shares on the platform. Only a variable and highly competitive spread apply to your stock trades. Your withdrawals will, however, attract a fixed $5 fee (with a minimum withdrawal limit of $30).
You may also want to buy Etsy stock on eToro because of the integrated social and copy trading platform. Copy trading allows any eToro user to earn passively, irrespective of their trading experience. Copiers earn by mirroring the trade settings of highly successful investors. But to be a copy trader, you must have an account balance of at least $200. Expert traders, on the other hand, receive a commission from eToro – depending on the value of assets under copy.
Your capital is at risk. Other fees apply.
Webull - Best for Affordability and Long-Term Investing
Webull is an equally popular online stock trading platform with its headquarters in New York. While it doesn't have a user base as large as eToro's, the broker lets you buy Etsy stock and 5000+ other shares of US-based companies and international ADRs. It, too, is a highly regulated multi-asset trading platform with a solid reputation for stellar support services and reliability.
To start buying Etsy shares on Webull, you will need to have a minimum account balance of $5. Note, however, that Webull doesn't maintain a minimum deposit limit. And it supports two payment options – ACH checks and bank wire. ACH inflows and outflows are free, but wire transfers will attract a fixed deposit and withdrawal fee of $8 and $25, respectively.
The broker doesn't maintain a broker commission. When buying Etsy stock here, you will only part with a competitive and highly variable spread.
Other factors that help Webull stand out among the best Etsy share brokers include its easily navigable and feature-rich trading platform. Further, Webull supports options trading and offers a special margin account to short traders.
More importantly, Webull lets you invest in Etsy stock and any of the 5000+ other shares supported on the platform using your IRA account. This refers to a tax-advanced investment account designed to help US residents plan for retirement. Income from share investments accrued by stocks held in an IRA account (both value appreciation and dividend income) are exempt from capital gains tax.
Step 2: Research ETSY Stock
Your preferred Etsy share broker will provide you with a brief about and a chart plotting its stock price history. But we advise that you be more thorough with your research and gather as much relevant information about the company and its stocks as possible.
In this guide, we will tell you everything you need to know about Etsy Inc and its historical stock price action. We will then use this information to find the common factors affecting Etsy's share price and tell you the impact they will have on Etsy's stock price moving forward.
What is Etsy?
Etsy Inc is a US-based eCommerce platform that specializes in linking artisans with buyers. Artisans – in this case – refer to creative products, often created by hand, such as jewellery, toys, furniture, art, bags, clothing, and home décor. It is also an online marketplace for vintage items – which refer to items that are more than 20 years old.
Originally known as Etsy Labs, Etsy was founded in June 2005 and has its headquarters in Brooklyn, New York. The brand is often viewed as a cross-fit of eBay and Amazon, but it sought to set itself apart by operating an open cross-fair listing model.
This implies that every seller on Etsy gets to open a digital storefront where they can list their products at the cost of $0.20 per item. Listed items can only remain on display for a maximum of four months – or until they are sold.
Virtually anyone – individuals, groups, and corporations – can set up a virtual Etsy store and list items.
The first item to sell on Etsy was a set of 10 handmade hair clips on 18th June 2005. Seventeen years later, the number of sellers on the platform has grown to 7.3 million and as many as 94 million users (40% of whom are repeat customers and 8.9% are habitual buyers).
Etsy makes money in three primary ways. First is the $0.20 fee charged for every listed item. The eCommerce platform also keeps 6.5% of the sale value for each item sold on its platform as a commission. And it also accepts payments to promote products on the platform.
Since its establishment, the number of users, the number and value of cyber inventory, as well as the company's gross revenues have been on an overall uptrend. Note, however, that the company only started making a profit in 2017. But it has posted a positive net income ever since and made more than $494 Million in 2021.
This may, however, change in 2022 - seeing that in the 12 months leading to September, Etsy reported a negative net income of $642 Million.
Etsy Stock Historical Price Performance
Etsy went public on 16th April 2015, with 16 million shares being offered to the public at an IPO price of $16. This helped the peer-to-peer online eCommerce platform raise $256 Million. On its first day of trading, however, ETSY share price surged 88% to close the day trading around $30 - giving Etsy Inc. a market capitalization of $3.3 Billion.
The eCommerce stock, however, started price-correcting soon and fell below the IPO price a month later and dipped to $10 in late October same year. It only started rallying again in the last half of 2016 when it recaptured the $10 mark.
This uptrend continued throughout 2017, and in December, Etsy recaptured the $20 mark before posting further gains and breaking above $50 for the first time in September 2018. By March 2019, Etsy was trading above $70, after which it stabilized and traded between $50 and $70 for the rest of the year.
The coronavirus outbreak sent shockwaves across the stock markets of the world, and share price started tanking in early 2020. By March, Etsy has lost more than 50% of its Peak 2019 share price, dropping to its current 3-year low of $30.
However, the investor community quickly realized the opportunity a locked-down economy would present eCommerce platforms. Etsy stock shares started rallying almost immediately. Less than three months after this crash, Etsy had rebounded and torn above $100, and by February 2021 –Etsy was trading above $230.
This peak was followed by a slight correction that sent ETSY stock price below $170 in May of the same year. But the rebound from that was even stronger as the stock price started gathering pace in June and went on to hit its current all-time high of $295 in the last week of November.
The bearish sentiments that dominated the stock market in 2022, however, saw the stock shed as much as 55% of this peak price in the 12 months leading to December.
Looking forward, there is a lot of optimism about Etsy's recovery, with the majority of analysts expecting it to tear above $300 during the next price run. But with the looming economic recession, they aren't sure it can happen in 2023.
Your capital is at risk. Other fees apply.
Factors Affecting ETSY Share Price
As is the case with any other stock, multiple factors could be attributed to ETSY's volatile past price action. In this section, though, we will be looking at factors that we believe will shape Etsy's share performance in 2023 and beyond. These include:
- Etsy financials: ETSY stock price often rally when Etsy company revenues grow – as they did in 2017. They will also dip when Etsy revenues dip. So, keep an eye on Etsy financials and revenue guidance and use them to inform your buy/sell decisions.
- Industry trends: Technology stocks had a rough year in 2022, and this might have contributed to Etsy's massive value loss. Factor the performance and direction of technology stocks when making buy and sell decisions for ETSY shares in future.
- Macroeconomics: Rising cost of living, disrupted supply chain, rising interest rates, and political instability in the world will all have a negative impact on Etsy shares. Conversely, a thriving global economy will push Etsy's stock price up.
- Projected growth: Etsy is looking to expand its revenue base and future-proof its business through acquisitions and the launch of new business divisions. Most recently, it acquired 'A Little Market' fashion brand, the 'Reverb' music marketplace, and the 'Depop' shopping app. All these have a positive impact on Etsy's share price.
Step 3: Open A Share Investor Account And Buy ETSY Stock
Do you want to jump straight to investing in Etsy? Here is a detailed guide that teaches you how to acquire your first ETSY share on the all-popular and highly regulated eToro brokerage:
Open a stock broker account
On your browser, open the official eToro website or download the eToro mobile trading app from the app store. Tap the "Join Now" button on either platform and complete the registration form that pops up.
This will seek to capture such details as your name, country of residence, email address, and phone number. It will also ask about your source of income and your trading experience. And you will also need to come up with an account name and create a strong password.
Verify your identity
The registration process is not complete until you have verified your identity. Submit a copy of a government-issued identification document like a national ID, passport, or driver's license. Then wait for approval notification.
Log in to your approved trader account and, on the user dashboard, click on the "Deposit Funds" button. A funding tab will pop up, indicating all the payment methods available to you. Choose one and follow the prompts to make a deposit of at least $10.
Buy ETSY stock
Once the deposit reflects in your account, tap on the "Discover" button to reveal the assets supported on eToro. Choose "Stocks" and use the search menu to find ETSY. Click on the" BUY" option and use the trading tab that pops up to customize the trade. Indicate the number of ETSY shares you wish to buy or how much you wish to invest and hit the "Open Trade" button to authorize the purchase.
Your capital is at risk. Other fees apply.
ETSY Stock Strengths And Weaknesses
Are Etsy shares worth buying in 2023? This is a leading question that you must ask yourself before hitting the BUY/SELL button on the stock brokerage.
You answer this by contrasting the factors that make Etsy a good investment and reasons why it may not be the wisest buy today.
To help you arrive at an informed decision, we have identified a few reasons why you may want to buy Etsy stock and a few more explaining why Etsy may not be the best buy yet.
Reasons to Buy ETSY Stock in 2023
- It's a growth stock: You may want to invest in Etsy in 2023 because it is a growth stock. The sales volumes on the platform, number of users, company revenues, and stock price have all been on an uptrend since its launch. We do not expect this to change in 2023.
- Ability to withstand recession: You should also consider buying Etsy shares because the company's unique business model may help it handle the recession better than competitors. Unlike Amazon and eBay, Etsy specializes in discretionary items and not consumer products. We don't expect this niche to be as affected by an economic recession.
- Growing revenues: Even with reduced sales volumes, Etsy still reported higher revenue in 2022. This further proves Etsy's ability to withstand the looming economic recession – which makes it worth buying.
Reasons Not to Buy ETSY Stock
- Looming recession: One of the casualties of a recession is the stock market, which almost always crashes under the weight of a collapsing economy. If the anticipated economic recession strikes in 2023, you can expect most stocks, including Etsy (which is already down by 40%+ in the last 12 months), to shed even more value.
Conclusion - How To Buy ETSY Stock
Etsy is an online peer-to-peer eCommerce platform that connects artisans and producers of discretionary items with the global market. Launched in 2005, Etsy has recorded one of the most impressive companies and revenue growth. Less than two decades since its establishment, for example, the company has expanded to 200+ countries and territories, welcomed 7+ million sellers and 93+ million total users. It has also posted a positive net income for five years straight.
Its stock price has also been on an uptrend since the company went public in 2015. In November 2021, Etsy stock hit its current all-time high of $295 (more than 1800% above its IPO price). But as the bears took over the markets in 2022, Etsy and all other technology stocks started plummeting. And twelve months after this peak price, ETSY has lost more than 55% of this value.
Looking forward, however, there is a lot of optimism about the company and its stock's future performance. Even with the threat of a recession, a significant number of analysts believe Etsy is a good buy – especially for long-term investors - as it is poised to continue growing long after 2023.
eToro – Buy Etsy Stock With 0% Commission
Open an account with eToro, deposit some funds with USD, and finally – buy Shares from just $10.
Your capital is at risk. Other fees apply.
FAQs About How To Buy ETSY Stock
How can I buy ETSY stock today?
The Etsy investing process is simple. Start by creating a stock trading account with your preferred online broker. Verify your identity and fund this account before placing a buy order for the eCommerce company stocks.
Does ETSY pay dividends?
No, like most other technology companies, Etsy doesn't pay dividends. It has instead opted to re-invest its profits in acquisitions and the launch of new business divisions.
Why did Etsy stock lose so much value in 2022?
Etsy's troubling stock performance throughout 2022 could be attributed to many factors. First is the underwhelming of the tech industry at large, the bear market, possible revenue dip, and reduced sales volumes.
Will Etsy stock price rebound in 2023?
Etsy stock price will eventually rebound and race to new heights – possibly above $300. We, however, aren't certain that this will happen in 2023 – especially when you consider the overwhelming bear sentiments that have taken over the market and the threat of recession.
How much do I need to start investing in Etsy today?
The minimum needed to invest in Etsy shares will be determined by your preferred broker's minimum deposit/trade limit and your risk tolerance.