Is Etsy Inc. (NASDAQ:ETSY) the best short interest stock to buy now?
Recently, I’ve published a list of 10 Best Short Interest Stocks to Buy Now. In this article, we’ll look at where Etsy Inc. (NASDAQ:ETSY) can buy now against other high short interest stocks.
Aditya Bhave, BOFA securities director for US economics, took part in the “Power Ranch” on CNBC on April 17th to discuss whether tariffs are ultimately inflation, discovery or deflation. Aditya Bhave replied that the impact depends on the magnitude of the uncertainty shock. He explained that tariffs are generally stags. This means that it contributes to both inflation and economic stagnation. However, he also emphasized that it is not just the content of the trade policy announcements that matter, but the disruptive way these policies are being conveyed, increasing uncertainty for businesses. He noted that there are scenarios in which the uncertainty caused by these policies outweighs the effects of male dogs and could instead fire tariffs. Bhave also referenced Federal Reserve Chairman Jerome Powell’s recent Hawkish remarks, drawing parallel to Powell’s attitude during the 2021-2022 rate hiking cycle.
He highlighted Powell’s claim that it would be impossible to maintain full employment without a stable price that would remain fully employed. Bhave believes the Fed will likely continue its current policy approach in the near future, focusing on price stability. Early in the Covid-19 pandemic, the Fed and Powell in particular responded significantly to tariff-induced supply chain disruptions, particularly by actively stimulating the economy. Bhave claimed that this positive response came later, not during the initial supply chain disruption, and although the Fed may have been a bit late, it ultimately increased by 425 basis points in a year. He doesn’t expect the Fed to repeat such aggression, but he believes it is currently strong if it holds stable interest rates.
First, I sifted through stock screeners and found companies with short interest between 10% and 25%. They then chose the shortest 10 shares as of April 16, but at the same time they were popular among elite hedge funds, with analysts bullish. Stocks were ranked in ascending order of the number of hedge funds that contain stocks in them as of the fourth quarter of 2024. Hedge fund data was sourced from Insider Monkey’s database, which tracks the movements of over 1,000 elite money managers.
Why are hedge funds interested in the stocks they accumulate? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter’s strategy was to select 14 small and large caps per quarter, returning 373.4% since May 2014, surpassing the benchmark by 218 percentage points (sFor more information about EE, click here).
Is Etsy Inc. (NASDAQ:ETSY) the best short interest stock to buy now?
Young woman buying vintage fashion items online.
Short % of floats as of April 16: 19.45%
Number of hedge fund holders: 58
Etsy Inc. (NASDAQ:ETSY) operates a two-sided online marketplace that connects buyers and sellers around the world. It works in three segments: Etsy, Reverb and Depop. It mainly runs the Etsy Marketplace, which connects artisans and entrepreneurs with a wide range of consumers. It also offers Reverb, the musical instrument market, and Depop, the fashion resale market.
Etsy Marketplace is the center of the company’s growth, but faced challenges in 2024, with GMS (total product sales) down 8.6% year-on-year in the fourth quarter. For a year, Etsy Marketplace GMS has declined 4% from 2023, reaching $12.6 billion in consolidated entities. This misperformance is partly due to prioritizing long-term customer experience improvement over short-term conversion driving experiments.
Despite a decline in GMS, Etsy Marketplace led its integrated record revenue of $2.8 billion, up about 2% year-on-year. This was achieved through initiatives such as Etsy ads and integrated payments. In the fourth quarter alone, consolidated revenues rose 1.2% year-on-year to a record $852 million. The company’s strategy for 2025 will focus on differentiating Etsy Inc. (NASDAQ:ETSY).
Oakmark Global Fund is Etsy, Inc. The following regarding (NASDAQ:ETSY) was stated in the second quarter of 2024: Investor’s letter:
“Etsy, Inc. (NASDAQ:ETSY) is a global market for unique and creative products that connect millions of buyers and sellers around the world. We first got interested in Etsy in 2017 when Josh Silverman took over as CEO and began to change the company from a boundary nonprofit to a higher margin, faster company. The Covid-19 pandemic has accelerated the company’s already strong underlying results as millions of new customers flocked to the platform, but like many other Covid-19 beneficiaries, Etsy has since benefited heavily since. In our view, investors today are so focused on the timing of Etsy’s return to growth, ignoring the company’s positive long-term outlook. We believe that the macro environment for Etsy’s product category has finally been improved, and that Etsy is poised to make money. At the same time, we believe Etsy’s continued push to the international market will provide a robust source of revenue growth over the long term. After the recent sale, we were able to purchase an intrinsic value estimate at a discounted price. ”
Overall, Etsy 4th place On the list of the best short interest stocks to buy now. Although we acknowledge Etsy’s growth potential, our belief lies in the belief that AI stocks offer higher returns and are extremely promising to do so within a shorter time frame. There have been AI stocks that have risen since the beginning of 2025, and the popular AI stocks have lost around 25%. If you’re looking for AI stocks that are more promising than Etsy, but are trading at less than five times the revenues, Cheapest AI stocks.
