May 24th- Etsy June 25
ETSY June 25th 190C, $2.05
Etsy is a global e-commerce company, creating a market for hand-crafted, vintage items to be bought and sold. Items sold on Etsy are: clothing, furniture, bags, jewelry, toys, art work, tools, craft materials and just about anything you can think. This was a pandemic winner, amassing a monster gain of over 200% return in 2020.
Etsy is here to stay and we believe their revenue growth and EPS will outperform expectations. With e-commerce doing almost $900 billion in 2020, we expect Etsy to be beneficiaries of this permanent shift of ordering from home. In 2020, Etsy grew revenue to over 111% YoY, and net income grew to 265% YoY.
Etsy has been sold off hard over the past 3 months, providing long term investors a nice entry, as well as the option play above. The chart is still intact, resuming its upward trend, however, just below its 200 moving average, which is bearish. However, fundamentals are still in play, as we believe it will break higher this week and move towards $185.
I have the options price a bit lower than where it traded Friday, because I think Monday we may have some selling which will provide nice entry.