Etsy's Q3 Upside: AI And Depop Drive Momentum

Etsy, Inc. (NYSE:ETSY) shares moved lower in Thursday's session as investors digested the company's third-quarter earnings report. 

Two analysts had a brighter outlook for the e-commerce retailer and raised price targets on Etsy shares. Here's a look at some of their expert ideas on the stock. 

• ETSY stock is down today. See the real-time price action here. 

Expert Ideas

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Canaccord Genuity analyst Maria Ripps noted that although the company’s marketplace GMS was down 2% year-over-year, GMS growth at Depop accelerated to nearly 40%. She also highlighted that new machine learning models in the app discovery feed drove double-digit engagement gains. 

• Canaccord Genuity maintained a Buy rating on Etsy shares and raised its price target from $76 to $80. 

Needham analyst Bernie McTernan noted that the OpenAI partnership positions Etsy as an early leader in agentic commerce. The ChatGPT integration enables direct platform purchase via instant checkout, benefiting both conversion rates and brand visibility. 

McTernan also pointed to GMS contraction shrinking faster than anticipated, with Q3 GMS down 2.4% year-over-year versus -4.8% in Q2, aided by stronger app engagement and buyer reactivation.

The analyst sees room for further upside if macro trends become supportive or if Etsy's unique growth initiatives deliver incremental buyer or seller uptake. 

However, risks remain from intensified competition (especially from Chinese e-commerce players) and continued macroeconomic headwinds.

• Needham & Co. reiterated its Buy rating on Etsy and raised the price target from $72 to $76. 

Price Action: According to data from Benzinga Pro, Etsy shares were down % at $ heading into Thursday's closing bell. 

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