Etsy Inc. (ETSY) is stuck in a holding pattern, and the market seems perfectly content to wait things out. According to BTIG, the company's Depop segment is still bleeding red ink, which isn't exactly the news investors wanted to hear.

The Analyst Take

Analyst Marvin Fong remains optimistic enough to maintain his Buy rating, but he's dialing back expectations with a reduced price target of $74, down from $81. The logic here is straightforward: Etsy looks cheap on paper, but nobody wants to jump in until there's more clarity on what happens next.

"Investors are in a wait-and-watch mode to see how the Depop marketing campaign and the CEO transition unfold in 2026," Fong explained. Translation: the stock might be undervalued, but patience is the name of the game right now.

Industry Headwinds Pile Up

Beyond the Depop situation, Etsy is dealing with a handful of broader challenges including agentic commerce, uncertain consumer spending patterns, and cross-border complications. It's a lot to juggle while also breaking in a new CEO.

Fong kept his adjusted EBITDA estimates steady at $741.2 million for 2026 and $808.3 million for 2027. He's also sticking with earnings projections of $2.31 per share in 2026 and $2.65 per share in 2027.

Market Snapshot

Etsy shares slipped 1.24% to $55.89 on Tuesday. With a market cap of $5.52 billion, the company remains a notable player in the broadline retail space. The stock's P/E ratio of 38.24 suggests investors are betting on substantial future growth, which makes sense given Etsy's distinctive position in the e-commerce world.