Chart of the Day: Etsy Stock Tumbles
Taking a look at Etsy after a 10% earnings dip.
Etsy stock isn’t trading well in Thursday’s pre-market session, down about 10%. The move comes after the company’s first-quarter earnings report.
The company crushed earnings and revenue expectations, posting its fourth straight quarter of triple-digit revenue growth. Guidance for next quarter also came in strong.
Despite this though, shares remain under pressure. That comes as investors remain cautious in a difficult comparison period vs. 2020. Of course, it doesn’t help that growth stocks are clearly in a bear market.
What’s up with the chart?
Trading Etsy Stock
Investing in a bear market is tough — for traders and investors. While the overall market is not in a bear market, it’s clear that growth stocks are.
When we look at the dip in Etsy stock, we see it’s being thrust right down to the 200-day moving average. Given how well this company and its stock has done, one would expect this level to at least provide a bounce this morning.
Etsy is currently trading around $168 in pre-market trading, putting it right near the 200-day. If the stock closes lower on the day, we’re talking about its sixth straight daily decline.
I want to see the stock open near the $170 area and try to rally. It’s preferable that it gives us a gap-fill back up toward $181.50. However, that might be asking for a lot considering it’s down about 10%.
Again, I expect some sort of bounce. The question is, how much “oomph” will it have? Will we bounce to $175 and fade? Will it close below the 200-day?
That’s what we’re trying to gauge. If it closes below the 200-day, perhaps the 50-week moving average is in play near $158.
I’m not calling a bottom in Etsy stock. At least not yet. However, this stock has been a big winner and despite the bumpiness — shares are down about 34% from the highs based on Thursday’s pre-market — the trend is still higher.