Etsy (ETSY) stock jumped 16.4% in Wednesday’s extended trading session after the online marketplace announced an agreement to sell its secondhand online clothing platform Depop to e-commerce retailer eBay (EBAY) for $1.2 billion in cash. The transaction is expected to be completed in the second quarter of 2026. The news comes ahead of Etsy’s fourth-quarter earnings release before the market opens on Thursday, February 19.
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Forget margin or options. Here's how the pros trade AMZNWall Street expects Etsy to report an 18.4% year-over-year decline in its earnings per share (EPS) to $0.84 for Q4 2025.
Meanwhile, eBay stock rose 6% in Wednesday’s after-hours trading on news of the Depop deal and the company’s better-than-expected Q4 2025 earnings.
Etsy Offloads Depop to eBay
Etsy bought Depop in 2021 for about $1.62 billion, as the company believed that the move would give its platform access to younger customers interested in buying and selling their used clothes, accessories, and other items. Aside from Depop, Etsy acquired many niche online platforms as part of its “house of brands” strategy to compete with larger rivals like Amazon (AMZN).
However, Etsy offloaded some of these marketplaces, including Elo7 and Reverb, as it struggled to thrive after the pandemic-led e-commerce boom faded. Aside from Amazon, the company faces stiff competition from Shopify (SHOP) and low-cost players such as Temu and TikTok Shop. Regarding the Depop sale, Etsy CEO Kruti Patel Goyal said that the deal would allow the company to focus exclusively on its Etsy marketplace.
Meanwhile, eBay expects Depop to advance its rapidly growing Focus Categories and help it gain access to a younger demographic in the expanding “recommerce landscape.”
Is ETSY Stock a Buy Right Now?
Currently, Wall Street has a Hold consensus rating on Etsy stock based on 11 Holds, two Buys, and one Sell recommendation. The average ETSY stock price target of $61.58 indicates about 40% upside potential.
