Etsy’s 5.99% Plunge Sinks It to 254th in Trading Activity Amid AI Push and GMS Slump

On July 31, 2025, Etsy (ETSY) closed with a 5.99% decline, its lowest volume in recent weeks at $570 million, ranking 254th in trading activity. The drop followed mixed Q2 earnings and revenue results, with the company reporting a 53.7% miss on profit estimates despite a 3.8% year-over-year revenue increase to $672.7 million. Strong on-site advertising and cross-platform payments partially offset a 0.5% decline in marketplace revenue, driven by reduced transaction fees and GMS. The firm repurchased $335 million in shares during the quarter.

Etsy’s active buyer base fell 4.6% year-over-year to 87.3 million, while services revenue rose 15.3% due to higher ad pricing. However, consolidated GMS dropped 4.8% to $2.8 billion, missing analyst expectations for buyer growth. The company also announced plans to leverage generative AI to reinvigorate its platform amid ongoing GMS declines. Meanwhile, U.S. policy shifts, including Trump’s end of the “de minimis” tax exemption for low-value imports, added uncertainty for e-commerce players like Etsy.

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