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Etsy stock price is rising amid the coronavirus pandemic. Facemask sales have been a core driver of this growth.
Etsy Inc (NASDAQ: ETSY) stock price has more than tripled since March. Much of this growth in prices came from the sales of masks. At the time of filing this report, Etsy stock was 0.12% up at $101.34 after yesterday’s 5% jump.
It all started when Etsy stock prices bottomed out in the middle of March. Etsy stock lost about 50% of their value in the markets. This was a general trend at the time when all the markets were tanking in response to the then-emerging COVID-19 pandemic.
Three months later, Etsy stock prices have not only rebounded, but they have also prospered at a time when many companies are bleeding cash and posting losses.
Etsy Stock Price Set to Reach Record Levels
Analysts are generally making recommendations of Etsy stock to be between $117 and $120. This comes at a time when e-commerce is experiencing a boom. The movement restrictions have also continued to the emergence of the trend.
More people are depending on electronic retailers to do their shopping. It works at this time when there is no end in sight as per the COVID-19 pandemic. One thing that Etsy has going for it is its ability to sell a diverse number of goods to both new and returning customers.
The mask sales helped Etsy to rebound from the March lows in April. Now that movement restrictions are easing, the items related to social gatherings are also on the mend. mask sales are also slowing slightly.
Etsy is an independent sellers’ haven. The self-described market place for “unique and creative goods” together with essential goods has made a name for itself in the online retail industry.
It faces constant pressure from the larger e-commerce sites such as Amazon.com Inc (NASDAQ: AMZN). The larger set of offerings that Amazon (AMZN) offers to its customers and its flexible shipping options have put Etsy on its toes.
When the movement restrictions were implemented, Etsy business was sour for a brief spell. Things turned around for the better however after Sellers started making facemasks. They have sold them in huge volumes ever since.
The company has indicated that it sold over 12 million ($133 million worth) of masks in its first-quarter report. Sellers flocked to the platform after the US Center for Disease Control (CDC) after the center approved that Americans can wear fabric masks.
Things Turn Round at the Last Minute
Ironically, Etsy had a day before withdrawn its guidance for the year. The worsening economy was the reason for the withdrawal.
Etsy CEO Josh Silverman said:
“Our sellers were able to suddenly start creating masks almost out of thin air in a matter of days and get to a point where they could produce and sell hundreds of thousands of masks a day in a matter of weeks,”
“And I don’t know many other retailers who could do something like that – like the agility of our marketplace,” added he.
This might be just the thing that will keep Etsy going. Agility in business is needed during volatile times.