Etsy’s Share Prices Increase While the Company Shows High Profitability

Published Date : Apr 17, 2015

On Thursday, Etsy, an online retail portal for vintage and handmade goods made a public debut by floating shares at US$31 a share. The price of this share then increased to US$34 a share. This proved to be twice the share price that was declared on Wednesday wherein the price of one share was US$16. At that price the valuation stood at US$1.8 billion. Also, in the month of March, the share value was within the range of US$14 and US$16. On the very first trading day, US$30 was the price at which the stocks closed and this resulted in a gain of 87.5%. 

The New York based company, Etsy has not been exhibiting favorable profitability despite the fact that the revenues have been increasing robustly. Last year, the revenue had increased by 56% which resulted in revenue worth US$195.6 million. However, as per a certain regulatory filing, there was still a loss worth US$15.2 million. And in 2013, the company had lost close to US$796000 against revenue worth US$125 million. 

It is seldom rare for a company not earning favorable profits to be on the lookout for public markets; however, Etsy happens to be a bit of a standout owing the status that it has of being a B-Corp. this also shows that the company focuses immensely on environmentally and socially responsible activities in business. In fact, the company comes under the category of 1000 such business working on similar lines. One such example would be Warby Parker dealing in eyewear. 

Etsy also realizes that there are a few priorities that may be at a competitive level with shareholders’ best interests. The one lurking fear is that there is a possibility that there may be a negative impact on Etsy’s medium and short term financial working and performance brought about by the company’s strong focus on sustainability from a long term perspective.