Etsy Divests Depop to Refocus on Core Marketplace

Etsy ( (ETSY) ) has provided an update.

On February 15, 2026, Etsy agreed to sell its U.K.-based subsidiary Depop, a fast-growing, mobile-first C2C fashion resale marketplace with about $1 billion in 2025 GMS and a predominantly Gen Z and Millennial user base, to eBay for roughly $1.2 billion in cash, subject to customary adjustments. The deal, unanimously approved by both boards and expected to close in the second quarter of 2026 pending regulatory clearance and other closing conditions, strengthens eBay’s position in recommerce and youth fashion while allowing Etsy to redeploy proceeds toward its core marketplace, including share repurchases and growth investments, with termination fees of up to $160 million underscoring the parties’ commitment to completion.

Etsy’s sale of Depop underscores a strategic refocus on its core marketplace, emphasizing sustainable growth and capital returns for shareholders. For eBay, integrating Depop’s highly engaged younger community and secondhand fashion inventory is set to deepen its C2C fashion offering, expand cross-listing and visibility for sellers, and potentially reshape competition in the global resale and circular fashion market, provided regulatory approvals are secured on schedule.

The most recent analyst rating on (ETSY) stock is a Hold with a $63.00 price target. To see the full list of analyst forecasts on Etsy stock, see the ETSY Stock Forecast page.

Spark’s Take on ETSY Stock

According to Spark, TipRanks’ AI Analyst, ETSY is a Neutral.

Etsy’s overall stock score reflects strong revenue growth and strategic initiatives like share buybacks and leadership transition. However, financial instability due to negative equity and declining profitability, coupled with bearish technical indicators, weigh heavily on the score. The company’s valuation suggests potential overvaluation, and challenges like declining active buyers and marketplace GMS need to be addressed for long-term growth.

To see Spark’s full report on ETSY stock, click here.

More about Etsy

Etsy, Inc. operates two-sided online marketplaces that connect millions of creative buyers and sellers globally, with Etsy.com serving as a leading destination for unique and handmade goods. Headquartered in Brooklyn and founded in 2005, the company focuses on “keeping commerce human,” offering sellers tools and services while historically also owning fashion resale platform Depop.

Average Trading Volume: 3,376,060

Technical Sentiment Signal: Strong Sell

Current Market Cap: $4.51B

See more insights into ETSY stock on TipRanks’ Stock Analysis page.