Etsy's $1.2B Depop Sale Sends Shares Up 14% with Q4 GMS at $3.6B
Etsy is selling Depop to eBay for $1.2 billion, 26% below its $1.62 billion purchase price in 2018, propelling its shares up 14%. Q4 revenue rose 6.6% and GMS climbed 2.4% to $3.6 billion, prompting Truist to lift its target to $83 while BofA cut estimates to $63.
1. Depop Sale Terms
Etsy agreed to sell its Depop business to eBay for $1.2 billion, marking a 26% loss on the $1.62 billion acquisition made five years earlier as it refocuses on its core marketplace.
2. Q4 Financial Metrics and Analyst Moves
In the fourth quarter, Etsy reported a 6.6% revenue increase and a 2.4% rise in GMS to $3.6 billion. Truist raised its price target to $83 from $80 while maintaining a Buy rating, whereas BofA lowered its target to $63 from $73 and Stifel trimmed theirs to $62 from $65, all citing sector valuation pressures.
3. Market Reaction and Expert Views
Shares surged 14% on the Depop sale announcement and stronger-than-expected earnings metrics. Jim Cramer highlighted the management overhaul and the growth potential in the secondhand clothing segment as key catalysts.