Etsy Shares Plummet Despite ChatGPT Partnership
Etsy's shares plummeted on Monday, losing 12.3% by 1:44 p.m. ET, following a significant stock market surge yesterday. The drop comes despite Etsy's recent partnership with ChatGPT, which initially boosted investor confidence.
Etsy's stock market price decreased by $7.96, settling at $66.39. This decline occurred despite the company's recent collaboration with ChatGPT, which had previously driven up the stock market price. The partnership, announced on September 29, 2025, by Shopify, could potentially increase traffic for Etsy but also raises concerns about dependency on external partners and future margins.
Analysts from Morgan Stanley and Stifel have questioned the long-term benefits of this partnership for Etsy. Currently, Etsy trades at around 24 times 2026 earnings estimates, with earnings projected to double relative to 2025. However, the Conference Board's consumer sentiment reading for September, at 94.2, down 3.6 points from last month, may impact Etsy's holiday quarter demand.
Etsy's stock market price fluctuations reflect the mixed reactions to the ChatGPT partnership. While it initially boosted the stock, analysts' concerns and a dip in consumer sentiment could potentially affect Etsy's future performance. The company is not currently among The Motley Fool's top 10 stock recommendations.
