Etsy’s stock price has more than tripled since mid-March and now stands at a record high marking one of the few retail success stories to emerge from the pandemic.
The online marketplace for independent sellers has experienced a dramatic turnaround since March when its share value plummeted by more than half over coronavirus fears.
In early April the retailer called on its network of sellers and makers to “start making face masks” in an unprecedented effort to meet demand.
A week later Etsy reported that buyers searched for face masks on the platform an average of nine times per second since the announcement, totalling over two-million searches.
In the rest of April Etsy, which charges sellers a listing fee for each item and takes a small commission on sales, sold over 12 million masks worth a total of $133 million, while its non-mask sales also jumped 79 per cent.
This boon in sales has seen its share price more than triple to an all time high of $101.22, following a 5.1 per cent rise on Tuesday.
This comes after RBC Capital Markets significantly raised its price target from $79 to $117, while Goldman Sachs increased its target from $88 to $120.
According to a survey conducted by RBC 82 per cent of respondents intend to spend more on Etsy over the next year, while Goldman cited a more than 100 per cent year-on-year increase in Etsy app downloads in June.
Meanwhile Jefferies said that the surge in mask sales has “helped introduce its broader offerings to new shoppers”, and that a “rebound in categories relating to social events” would help offset falling mask sales.
RBC went on to predict that sales for 2021 would continue to rise, jumping 22 per cent from 2020 and pointing to sustainable growth for the company long outlasting the global lockdown.