Investment bank downgrades Etsy

 

Etsy shares have slumped amid analyst concerns about decreased spending on the e-commerce platform.   Investment bank Jeffries downgraded Etsy stock from the "buy" to "underperform" category, Yahoo Finance reported on Thursday. Jefferies analyst John Colantuoni said the bank issued a rare "double downgrade" because "buyers are churning faster and spending less on Etsy." Etsy was downgraded despite reporting what it called "record" revenue for Q4. The e-commerce platform posted consolidated revenue of $807.2M, up 12.6% YoY. The company said it is attempting to reactivate 24 million "lapsed" buyers in a bid to keep more users on its site.  Inflation has led many consumers to prioritize basic items rather than the non-essential products commonly sold on Etsy. Etsy noted in its earnings release that it is planning future strategies around unexpected changes in "consumer spending and e-commerce generally."