Etsy Inc.'s stock faced heavy selling pressure in the pre-market session on Wednesday, plunging over 9% after the e-commerce company reported a 6.8% year-over-year decline in its consolidated Gross Merchandise Value (GMV) for the fourth quarter of 2024.
The company reported better-than-expected earnings per share of $1.03, beating analysts' estimates of $0.94. However, its revenue of $852.2 million fell short of the estimated $862.818 million, disappointing investors.
The weaker-than-expected GMV and revenue figures overshadowed the earnings beat, resulting in a significant sell-off in Etsy's stock. Investors appeared concerned about the company's ability to sustain growth in its core e-commerce business, as reflected in the declining GMV metric.