New York, Feb 23, 2026, 09:06 EST — Premarket
- Etsy shares were little changed in premarket trade after jumping 8.4% on Friday.
- Investors are still digesting Etsy’s Depop divestiture and a softer first-quarter outlook.
- Broader risk appetite wavered as fresh U.S. tariff uncertainty weighed on futures.
Etsy shares were flat in premarket trading on Monday, hovering around $52.18 after ending Friday up 8.39% at $52.18. (Yahoo Finance)
The stock was trying to hold on to last week’s rebound as U.S. index futures pointed lower before the opening bell, with traders wary of shifting tariff policy and what it could mean for consumer spending. (Reuters)
Etsy and eBay said eBay would buy Depop for about $1.2 billion in cash, a deal Etsy Chief Executive Kruti Patel Goyal said would let Etsy “focus exclusively” on its core marketplace. Etsy said it plans to use the proceeds for general corporate purposes, continued share repurchases and investment in its core business. (Etsy, Inc.)
In its latest results, Etsy said quarterly revenue was $881.6 million and it guided first-quarter gross merchandise sales (GMS) — the dollar value of goods sold on the platform — to $2.38 billion to $2.43 billion. The company also said it ended the quarter with $1.8 billion in cash and investments and repurchased about $133 million of stock in the fourth quarter, while pointing to product and marketing work it said was starting to show up in its customer metrics. (Etsy, Inc.)
“Depop had largely been overlooked by investors,” CFRA analyst Arun Sundaram said in a note after the divestiture news, adding the valuation looked like a positive surprise. Etsy Chief Financial Officer Lanny Baker told analysts the company’s outlook assumed consumer spending conditions stayed broadly stable. (Reuters)
At eBay, CEO Jamie Iannone said the deal was aimed at leaning into resale demand, telling Reuters that “the younger generation is very focused on pre-loved apparel.” (Reuters)
Outside the company, tariff headlines were back in play. U.S. Customs and Border Protection said it would stop collecting certain tariffs at 12:01 a.m. EST on Tuesday after a Supreme Court ruling, while a new 15% global tariff has been put in place under a different authority. (Reuters)
There are still obvious ways this trade could go wrong. The Depop sale needs regulatory clearance and closing conditions, and Etsy’s own forecast implies a weaker start to the year even as it tries to revive growth in its core marketplace amid intense online retail competition.
Investors will be looking for any fresh signals on the pace of Etsy’s buybacks and how quickly the Depop deal moves toward closing, while keeping an eye on Tuesday’s U.S. consumer confidence report for a read-through on discretionary demand. (Cmegroup)
