Etsy Stock Has Had a Rough Time Of It. Here’s Why It’s Rising Today.

David Marino-Nachison

Fri, February 20, 2026 at 2:29 AM GMT+9 2 min read

In this article:

ETSY

+11.26%

EBAY

+4.34%

Key Takeaways

Etsy on Wednesday said it would sell fashion marketplace Depop to eBay for $1.2 billion in cash.

The deal marks the end of Etsy's "house of brands" era, which once included three other businesses. Its shares are rising on the news.

Etsy is getting a lift today—for selling a business for less than it paid to buy it.

The morning’s rise in Etsy (ETSY) shares, recently up 9% to around $48, illustrates the long journey the crafts marketplace company’s stock has been on since its pandemic highs, when shares traded in the neighborhood of $300 apiece. While today’s move is notable, the shares are still down this year and over the past 12 months.

Why This Matters to Investors

Etsy’s history of acquisitions promised growth in years past, but the company has now shed all three of the other companies that once made it a self-styled “house of brands.” Management’s focus on its core business is energizing investors today, though the stock has had a long downward run.

The sale was announced yesterday: Etsy said it would hand Depop, a fashion marketplace for consumers, over to eBay (EBAY) for $1.2 billion in cash. (Shares of eBay were up about 5% this morning. Read Investopedia’s full markets roundup here.) That news closed the book on a $1.6 billion acquisition Etsy announced in 2021.

Etsy is characterizing the sale as letting it focus on its core Etsy marketplace, which as of the end of 2025 had nearly 87 million buyers but saw global merchandise sales fall year-over-year. (Roughly 90% of the company’s “GMS,” the company says, came from the Etsy marketplace.) When it acquired Depop, Etsy sought to define itself as a “house of brands” that also included Reverb and Elo7. Now, it’s moved on from all three of the other properties.

“We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers,” said Etsy CEO Kruti Patel Goyal. “We believe this transaction is a great outcome for Etsy’s shareholders, and a positive next step for all involved."

That’s encouraging investors today. Wall Street analysts are broadly bullish on Etsy’s stock, though their $67 mean price target, per Visible Alpha, still falls well short of its apex.

Read the original article on Investopedia

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