Shift in Consumer Spending Impacted Etsy (ETSY) in Q2

ClearBridge Investments, an investment management firm, released its second-quarter 2023 “Mid Cap Growth Strategy” investor letter, a copy of which can be downloaded here. Mid-cap stocks posted positive gains in the quarter, as signs of economic robustness, moderate inflation, and stronger-than-expected corporate earnings helped boost equity markets. The strategy outperformed its Russell Midcap Growth Index during the second quarter. On an absolute basis, the strategy gained eight of the 10 sectors in which it was invested during the quarter. IT and industrials sectors were the leading contributors while the consumer discretionary sector detracted. Overall stock selection positively contributed to performance on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.

ClearBridge Mid Cap Growth Strategy highlighted stocks like Etsy, Inc. (NASDAQ:ETSY) in the second quarter 2023 investor letter. Headquartered in Brooklyn, New York, Etsy, Inc. (NASDAQ:ETSY) is a two-sided online marketplace that connects buyers and sellers. On September 15, 2023, Etsy, Inc. (NASDAQ:ETSY) stock closed at $64.94 per share. One-month return of Etsy, Inc. (NASDAQ:ETSY) was -11.43%, and its shares lost 41.90% of their value over the last 52 weeks. Etsy, Inc. (NASDAQ:ETSY) has a market capitalization of $7.989 billion.

ClearBridge Mid Cap Growth Strategy made the following comment about Etsy, Inc. (NASDAQ:ETSY) in its Q2 2023 investor letter:

“Likewise, Etsy, Inc. (NASDAQ:ETSY), another detractor and the leading e-commerce marketplace for handcrafted items, was negatively impacted by a shift in consumer spending from goods to services, elevated year-over-year performance comparables and fear of slowing growth in the second half of 2023 or 2024. Despite these challenges, we believe much of the shift in consumer purchasing has already occurred and investor pessimism over future performance may be overblown.”

Etsy, Inc. (NASDAQ:ETSY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Etsy, Inc. (NASDAQ:ETSY) at the end of second quarter which was 31 in the previous quarter.

We discussed Etsy, Inc. (NASDAQ:ETSY) in another article and shared the list of undervalued wide moat stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.