Etsy shares rose about 10% after the company agreed to sell its Gen Z-focused resale platform Depop to eBay for nearly $1.2 billion, a move investors view as margin-accretive and supportive of a turnaround under new leadership. The divestiture, expected to close in Q2 2026, follows prior asset sales and is intended to refocus Etsy on its core handmade and vintage marketplace amid competitive pressures from rivals such as Amazon. Despite the positive strategic reaction, Etsy reported slightly weaker-than-expected Q4 revenue and a 1% decline in gross merchandise sales, and it guided for a year-over-year drop in Q1 GMS, reflecting continued soft consumer demand.
Etsy Shares Jump After Depop Sale; Demand Pressures Weigh On Results
