Tuesday’s Headlines: Etsy Strike Begins
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Smartsheet (SMAR) +4.1%
DraftKings (DKNG) +3.0%
PagerDuty (PD) +2.8%
Zillow (Z) +2.7%
Moving Down ⬇️
Cognex (CGNX) -5.0%
Tesla Motors (TSLA) -4.8%
Nautilus (NLS) -4.4%
1. It may not be the best time to buy that antique chess set you were looking at, because almost 15,000 Etsy (ETSY) sellers are on strike. Support for the strike has made its way into the consumer sphere too, with over 50,000 people having already signed a petition demanding changes. Aside from the primary catalyst of the strike, which is increased transaction fees from 5% to 6.5%, striker demands also include giving the ability to opt-out of offsite ads, cracking down on resellers, creating priority support tickets, and more. Etsy shareholders appear unfazed though, with its stock price closing in the green yesterday, perhaps thanks to Etsy CEO Josh Silverman’s comments that the fee hike will help Etsy invest in marketing, grow its support team by 20%, and continue investing in security. You can read more about this here.
2. Shares in Shopify (SHOP) jumped 2.35% on Monday after it announced a 10-for-1 stock split. The Canadian e-commerce company said the stock split is to make share ownership more accessible to all investors and will come into effect on June 28th, should it receive shareholder approval. It’s been a rollercoaster ride for Shopify in recent years, with its stock soaring about 185% in 2020 and another 21% in 2021. However, shares have fallen more than 50% year-to-date (YTD) as the pandemic boost started to fade. While a stock split does not change the intrinsic value of a company, it does generally result in a boost in share price and can have consequences for options traders and management alike. You can read all about this and our analysts’ thoughts here.
3. Wrapping up a morning headlines trinity of e-commerce news, Amazon (AMZN) is making an unexpected push into athletic apparel. Launched in 2020 as a simple custom t-shirt brand, Amazon’s Made for You has just launched an athletic apparel shirt option, with over 50 customizable choices to choose from. “It sells sports shirts, so what?” I hear you mutter. The real prize here is consumer data, as custom user specs ensure that Amazon gains a lot of real-world data on customers’ body measurements as it works to expand its own private label clothing lines. Much like Netflix’s (NFLX) pivot to original productions, could we be looking into a future where Amazon’s own-brand products dominate the retail space? Investors should keep an eye on Made for You developments and any butterfly effects that spring from it. Read more here.