Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Tiger Global First To File On Etsy Inc (ETSY) Post-IPO, Still Bullish

The dreary performance appears to fall on a number of factors, including IPO over-exuberance from investors, who are used to IPOs delivering strong returns in recent years and perhaps overlooking the fundamentals of this particular company, as well as an earnings report in the middle of May that threw up even more warning signs. Among them were rapidly increasing expenses, declining growth from product sales on its site, and warnings over second quarter earnings from management, which predicted that expenses would continue to grow while overseas sales may be negatively impacted by the stronger U.S dollar.

Etsy, which offers an online marketplace for the sale of handcrafted and unique items, is also at risk of potentially deadly competition from, Inc. (NASDAQ:AMZN), which teased in late May that it would launch its own Amazon Handmade service, and has even reportedly been wooing current Etsy sellers, some of whom make six-figure salaries selling highly popular, money-making items on the platform such as candles, clothing, and accessories.

The threat of, Inc. (NASDAQ:AMZN) is particularly worrisome given that Etsy’s revenue growth in the first quarter was largely fueled by selling services to the people who power the site, its sellers. Should Amazon come along with a superior (and cheaper) service, one that allows sellers access to an even wider audience of customers, it’s not hard to envision Etsy’s current revenue growth drying up quickly.

Despite all that, Tiger Global Management is not fazed, and seemingly believes that Etsy will continue to grow and that there is space for both it and, Inc. (NASDAQ:AMZN) in the handcrafted online marketplace. Whether other investors are as keen, only time will tell. Tiger Global Management is the only known shareholder of Etsy among the investment firms in our database at this time.

Disclosure: None

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.