ETSY Puts Continue to Thrive

AI Summary

Bearish ETSY short thesis citing buyback-supported price, AI take-rate headwinds and expected disastrous earnings with a $30 target.

ETSY — SHORT Author remains short ETSY and is increasing the position, arguing the stock's rebounds are forced by company buybacks (four block buys of ~500k shares) and that it plummets whenever buybacks cease, as seen in volume spikes on drawdowns. They expect earnings to be a disaster and see AI headwinds reducing take-rate while pushing off-platform purchases to other companies. Price target is $30, with the firm short 350,000 shares.

We remain short, increasing position, and expect earnings to be a disaster. AI headwinds will only decrease take-rate and cause off platform buys to other companies to increase.

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u/HunterMichael92 Reddit r/ValueInvesting

Short ETSY on buyback dependence, AI headwinds

Author remains short ETSY and is increasing the position, arguing the stock's rebounds are forced by company buybacks (four block buys of ~500k shares) and that it plummets whenever buybacks cease, as seen in volume spikes on drawdowns. They expect earnings to be a disaster and see AI headwinds reducing take-rate while pushing off-platform purchases to other companies. Price target is $30, with the firm short 350,000 shares.

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