Etsy, Inc. (ETSY): A Bull Case Theory 

We came across a bullish thesis on Etsy, Inc. on TickerTrends Research’s Substack by TickerTrends. In this article, we will summarize the bulls’ thesis on ETSY. Etsy, Inc.’s share was trading at $54.95 as of January 29th. ETSY’s trailing and forward P/E were 38.64 and 20.83, respectively according to Yahoo Finance.

Etsy, Inc., together with its subsidiaries, operates two-sided online marketplaces that connect buyers and sellers worldwide. ETSY enters Q4 2025 with a clearly bullish setup driven by strengthening mobile engagement, expanding monetization, and accelerating momentum from Depop, positioning the company to outperform despite softer buyer counts and macro uncertainty. The platform’s mobile-first pivot is proving effective, with Etsy’s app ranking up 30% year over year across iOS and Android, while Depop continues its powerful resurgence with roughly 50% YoY ranking gains.

These improvements are translating into higher-quality traffic, reflected in global consumer usage rising 6.5% and U.S. usage up 6.0%, reinforcing the platform’s ability to attract and retain its most valuable users. Etsy is increasingly focused on maximizing GMS conversion efficiency and extracting more revenue from high-value cohorts, especially app users who visit five times more frequently and convert 1.5 times more than web users, making them the cornerstone of its long-term LTV strategy.

This shift toward deeper engagement is already visible in financial performance, with revenue growth outpacing GMS growth as the company expands its take rate to 24.9% in Q3. The sustained strength in take rate underscores Etsy’s growing pricing power and sellers’ willingness to invest in Etsy Ads, a high-margin driver that continues scaling.

With Depop adding incremental growth, mobile engagement accelerating, and monetization levers proving highly effective, Etsy is positioned for a stronger-than-expected holiday quarter. The combination of rising high-quality usage, superior conversion cohorts, and expanding platform economics supports a constructive outlook and sets the stage for potential upside as macro pressures ease and engagement tailwinds compound.

Previously we covered a bearish thesis on Etsy, Inc. by Kostadin Ristovski, ACCA in November 2024, which highlighted stagnant buyer growth, declining GMS retention, low-quality product influx, and rising marketing dependence. The company’s stock price has appreciated approximately by 5.69% since our coverage. The thesis still stands as the structural concerns remain unresolved. TickerTrends shares a contrarian view but emphasizes Etsy’s strengthening mobile engagement and monetization momentum.

Etsy, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held ETSY at the end of the third quarter which was 46 in the previous quarter. While we acknowledge the risk and potential of ETSY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ETSY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.