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Etsy Inc

ETSY: XNAS (USA)
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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation
$269.00ZzbdsCsxtgsfc

Etsy Should Emerge Stronger as Cyclical Pressures Abate; Wide Moat Continues to Look Intact

Business Strategy and Outlook

Etsy has carved out an interesting competitive niche, jockeying for e-commerce wallet share across a variety of heterogeneous verticals in the long tail of unbranded products. The firm’s marketplace properties—Etsy, Reverb, and Depop—all target non-commoditized inventories (artisanal crafts, used musical instruments, and vintage clothing resale), generate commissions on third-party, peer to peer sales, and strive to create a “treasure hunt” experience around a unique, customizable, and consequently less price elastic product suite. The firm's core "Etsy" marketplace accounts for roughly 90% of consolidated gross merchandise volume, or GMV.

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