What Happened?
Shares of online marketplace Etsy (NASDAQ: ETSY) fell 5.3% in the morning session after reports that a U.S. tariff exemption for many small online purchases is set to end. The exemption, known as 'de minimis,' has allowed many goods from international sellers to be shipped to U.S. consumers without facing import duties.
According to reports, the end of this provision is expected to directly affect online marketplaces that connect U.S. consumers with businesses worldwide, with Etsy being specifically mentioned. This policy change could lead to higher prices for buyers or increased costs for sellers on the platform, creating uncertainty for Etsy's business model and potentially impacting future sales volumes.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Etsy? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Etsy’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock dropped 5.4% on the news that markets continued to decline, as investors grew cautious ahead of a key speech by Federal Reserve Chair Jerome Powell. The move came as U.S. equity markets recorded a fifth consecutive day of losses for major indexes like the S&P 500, with technology stocks experiencing the largest declines. Investors have grown wary that the sharp rally in the tech sector since April may have advanced too far. The market-wide caution is largely driven by the upcoming Jackson Hole symposium, a meeting of central bankers, where traders are anxiously awaiting Fed Chair Powell's speech on Friday for guidance on the future path of interest rates.
Etsy is up 10.8% since the beginning of the year, but at $58.84 per share, it is still trading 16.1% below its 52-week high of $70.09 from August 2025. Investors who bought $1,000 worth of Etsy’s shares 5 years ago would now be looking at an investment worth $469.00.
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