It’s looking like a little love from Elon Musk is all it takes, as Etsy (NASDAQ:ETSY) stock surged more than 8% in pre-market trading. But what is this pre-Valentine’s Day love all about?
According to the Tesla (NASDAQ:TSLA) founder’s Twitter feed, he bought a Marvin the Martian item for his dog. “I kinda love Etsy,” he tweeted. And now, the shares are among the top trending tickers ahead of Tuesday’s market open.
Lest you think the market has gone too far, don’t forget that an earlier tweet from the EV maker — though misread — led to a three-figure surge in biotech Signal Advance (OTCMKTS:SIGL) after Musk tweeted his props to privately held encrypted-messaging platform Signal. And, of course, TSLA stock’s reaction to the CEO’s own tweets are legendary.
Real Reasons to Love ETSY Stock
Aside from dog apparel — or maybe because of it — there are solid reasons to like ETSY stock.
Just last week, InvestorPlace contributor Divya Premkumar cited the company in her round-up of top online retail stocks to buy now.
“The acceleration of online shopping directed investor attention to companies in this space. One major beneficiary of this high-growth trend is Etsy. At the onset of the pandemic, the online arts-and-crafts retailer became a go-to source for handmade masks. Many sellers on the platform made the strategic shift to creating masks to meet this unprecedented demand.”
She highlighted how Etsy’s success in 2020 led its share price to nearly quadruple and qualified the stock for entry into the Nasdaq 100.
Jefferies analyst John Colantuoni remains confident in Etsy’s potential and increased the price target to $205 from $168. He described its sales growth as “defying gravity” as revenue doubled to $1.1 billion from 2019.
As well, InvestorPlace Markets Analyst Thomas Yeung last month called Etsy “one of the more promising long-term stocks on the market.” He advised readers to look at the shares as the market poses some uncertainty and investors seek some reliability.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.