Shares of Etsy Inc, an online marketplace for handmade goods and crafts, more than doubled in their debut on Thursday, valuing the company at about $4 billion. The company's offering of about 16.7 million shares raised about $267 million, after it was priced at the top end of the expected range of $14-$16. "There is demand within the niche they operate in for unique handcraft and vintage goods," Wedbush Securities analyst Gil Luria said, starting coverage with a "neutral" rating.
Brean Capital started with a "buy" rating, citing Etsy's "differentiated products" and popularity on social networks such as Facebook. Founded in 2005 by Robert Kalin, Etsy has grown from a website selling wooden goods to an online community offering handmade items. Etsy, which has 29 million items listed on its website, offers jewelry, stationery, clothing, crafts and home goods. The company's revenue comes from listing fees and commissions on sales and from its advertising platform, payment processing and shipping services.
Etsy, whose larger rivals include Amazon.com Inc, eBay Inc and Alibaba Group Holding Ltd, had 1.4 million sellers and 19.8 million buyers as of December. The global online retail market is expected to grow about 17 percent to $1.5 trillion between 2013 and 2018, according to research firm Euromonitor.
Comments
Comments are closed.