ETSY stock was on a wild ride Friday following the release of its Investor Day update.
The Investor Day update from Etsy (NASDAQ:ETSY) has the company providing information about its long-term goals and five-year plans for the company. While the company is expecting strong growth during this period, it may not be enough to satisfy investors.
Starting off, Etsy says that it is expecting GMS to increase between 16% and 20% over the next five years. It also notes that it is expecting revenue to grow slightly faster than GMS during this period.
The Investor Day update that has ETSY stock moving today also sees it expecting adjusted EBITDA margins increasing over the next five years. The company says that it expects this to expand to 30% or higher during that time.
“We believe our product improvements and investments lay the foundation for sustained growth over the next five years,” Rachel Glaser, CFO of Etsy, said in a statement. “Etsy has been growing faster than the overall e-commerce market, and this outlook suggests we will continue to grow faster than the market.”
ETSY stock started the day off down about 5% on Thursday. However, the stock managed to climb back up throughout the day and was even up 1% at one point. As of Thursday afternoon, ETSY stock is only up slightly from yesterday’s close. The stock is also up 43% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.
