Shares of Etsy (NASDAQ:ETSY) are slightly higher at the time of writing after the company entered into an agreement to sell its Brazilian marketplace Elo7. Etsy, via its CEO Josh Silverman, acknowledged the hard work involved in building out Elo7 in Brazil but noted that its performance just hasn’t been where Etsy wanted it to be. Thus, Etsy sold off Elo7 to Enjoei S.A., also in Brazil. Now, Etsy’s House of Brands will include only Etsy itself, as well as Depop and Reverb. In the last year in particular, Elo7 worked to step up its conversion rate as well as improve sellers’ access to key tools like better shipping and online marketing.
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Indeed, Etsy has no shortage of items in its catalog. Recently, Etsy branched out into real estate as it began selling a line of custom-made tiny houses. Made by seller LunaGlamping, it’s a part-plywood, part-PVC structure known as the “Stargazer” because large portions of it are transparent. Further, several Etsy sellers branched out into a live event in Dunbar, West Virginia. The live event featured all manner of vendors showing off their goods and, by extension, showing off the incredible depth of field that Etsy can offer. This makes selling off an underperforming brand look like a smart idea; after all, there is no shortage of brands already on Etsy.
Analysts, for the most part, are on Etsy’s side. With 12 Buy ratings, five Holds, and two Sell, Etsy stock is considered a Moderate Buy. Further, Etsy stock comes with 23.69% upside potential thanks to its average share price of $116.53.
