Etsy

Etsy’s stock rose after selling its fashion resale app Depop to eBay for $1.2 billion, signaling a focus on its core marketplace. While Q4 earnings beat expectations, revenue and gross merchandise sales slightly missed targets, partly due to a prior divestiture. The Depop sale aims to streamline operations, while eBay enhances its presence in the growing fashion resale market. Etsy’s active seller base grew, though active buyers saw a minor dip. Future GMS guidance indicates a cautious outlook.

Etsy’s stock jumped over 14% after announcing the sale of its fashion resale subsidiary, Depop, to eBay for $1.2 billion. This move signals Etsy’s strategic shift to concentrate on its core marketplace, exiting its “house of brands” approach. The divestiture, following the sale of other niche platforms, comes amid increased competition and slowing growth for Etsy. For eBay, acquiring Depop strengthens its fashion segment and appeals to younger consumers, coinciding with eBay’s own positive Q4 earnings report.

Etsy CEO Josh Silverman will become executive chairman at year-end, with President Kruti Patel Goyal succeeding him on January 1, 2026. The leadership change coincides with Etsy’s Q3 earnings, which saw revenue exceed estimates but a decline in gross merchandise sales, triggering a 12% stock drop. Active buyers decreased, while Depop’s GMS surged. Silverman, who led Etsy through significant growth, faces challenges from increased competition. The company is integrating AI, including a partnership with OpenAI, to boost customer engagement.