Q4 Rundown: Etsy (NASDAQ:ETSY) Vs Other Online Marketplace Stocks

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how online marketplace stocks fared in Q4, starting with Etsy (NASDAQ:ETSY).

Marketplaces have existed for centuries. Where once it was a main street in a small town or a mall in the suburbs, sellers benefitted from proximity to one another because they could draw customers by offering convenience and selection. Today, a myriad of online marketplaces fulfill that same role, aggregating large customer bases, which attracts commission-paying sellers, generating flywheel scale effects that feed back into further customer acquisition.

The 12 online marketplace stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.5% since the latest earnings results.

Etsy (NASDAQ:ETSY)

Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NASDAQ:ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.

Etsy reported revenues of $852.2 million, up 1.2% year on year. This print fell short of analysts’ expectations by 1.2%. Overall, it was a softer quarter for the company with a decline in its buyers.

"Despite facing significant GMS headwinds in 2024, we are proud to have delivered year-over-year revenue growth and very strong profitability, while simultaneously investing in our future," said Josh Silverman,Etsy Total Revenue

The stock is down 20.1% since reporting and currently trades at $45.80.

Read our full report on Etsy here, it’s free.

Best Q4: MercadoLibre (NASDAQ:MELI)

Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.

MercadoLibre reported revenues of $6.06 billion, up 37.4% year on year, outperforming analysts’ expectations by 2.8%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ number of unique active users estimates.MercadoLibre Total Revenue

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $2,112.

Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Teladoc (NYSE:TDOC)

Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE:TDOC) is a telemedicine platform that facilitates remote doctor’s visits.

Story Continues

Teladoc reported revenues of $640.5 million, down 3% year on year, in line with analysts’ expectations. It was a softer quarter as it posted full-year EBITDA guidance missing analysts’ expectations.

Teladoc delivered the slowest revenue growth in the group. The company reported 93.8 million users, up 4.7% year on year. As expected, the stock is down 21.9% since the results and currently trades at $8.59.

Read our full analysis of Teladoc’s results here.

LegalZoom (NASDAQ:LZ)

Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ:LZ) offers online legal services and documentation assistance for individuals and businesses.

LegalZoom reported revenues of $161.7 million, up 1.9% year on year. This print topped analysts’ expectations by 0.6%. It was a strong quarter as it also logged EBITDA guidance for next quarter exceeding analysts’ expectations and a decent beat of analysts’ number of subscription units estimates.

The company reported 1.77 million users, up 14.3% year on year. The stock is up 5.2% since reporting and currently trades at $9.32.

Read our full, actionable report on LegalZoom here, it’s free.

eBay (NASDAQ:EBAY)

Originally known as the first online auction site, eBay (NASDAQ:EBAY) is one of the world’s largest online marketplaces.

eBay reported revenues of $2.58 billion, flat year on year. This result met analysts’ expectations. Aside from that, it was a mixed quarter as it also recorded EPS guidance for next quarter slightly topping analysts’ expectations but revenue guidance for next quarter meeting analysts’ expectations.

The company reported 134 million active buyers, up 1.5% year on year. The stock is down 4.7% since reporting and currently trades at $65.85.

Read our full, actionable report on eBay here, it’s free.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.

View Comments