Etsy stock will start trading tomorrow, April 16. Here's everything you need to know.
What is the Etsy stock symbol?
The Etsy stock symbol is ETSY and it is listed on the Nasdaq.
What is the Etsy stock price?
The Etsy IPO price - the price early investors will get shares for - will be announced tonight. It is expected to be in the $14 to $16 range. The Etsy stock price on its first trading today could be volatile. Many IPOs soar on the first day only to come back to earth shortly after. But Etsy might have trouble soaring because it has turned some investors off with its profitability issues.
How does Etsy make money?
The "Etsy Weather Report" - which provides the company's monthly site-wide statistics - said advertising and payment processing make up nearly 80% of Etsy's revenue. Transaction and listings fees make up 55% of revenue and have grown 60% year over year since 2006.
But expenses are high. That's why in its IPO filing, the company wrote: "We have a history of operating losses and may not achieve or maintain profitability in the future."
How much is Etsy worth?
Etsy is valued at $1.8 billion.
How much will Etsy IPO raise?
It depends on the Etsy IPO price, but it could be $250 million at the high end of the range.
How exactly does Etsy operate?
Founded in a Brooklyn loft in 2005, the company started as a way for its founders to sell handmade wooden crafts. Now, users buy and sell everything from art and photography to food and bath products. It has grown steadily over its decade-long history, with 54 million members, 1.4 million active sellers, and 19.8 million active buyers around the world.
Etsy is a B Corporation - what is that?
Etsy's culture is ingrained in its B Corporation certification. B Lab, the nonprofit that distributes the certifications, awards them to companies that meet certain social, environmental, transparency, and accountability standards. As part of its certification, Etsy offers employees bikes for their work commute and composts food waste.
These wholesome values are central to Etsy's pitch as the company pursues investors on its IPO roadshow. Etsy's management considers the well-being of the shareholders and community paramount to its success.
The company asks investors to embrace its mission to "do good" and do well - a mantra Wall Street isn't accustomed to.
"It's like a beautiful test in a way to see if it's possible to have a mission beyond money," said Rett Wallace, CEO of Triton Research, to Bloomberg. "You see these situations all the time where even management is doing their best to take every penny off the table - regardless of what it does to the widows and orphans - you often see fund managers saying, 'You're not doing enough to make money.'"
Make More Money This Year, No Matter What the Market Does... You can make 2015 your wealthiest year in a few simple moves. You just need to know the three common investing habits to dump immediately, the single most effective strategy for your portfolio, and five stocks to get you started to a wealthier you. Get all of that right now in this exclusive guide...