Shares of Etsy (ETSY) jumped 12% Tuesday, bringing its weekly gain to almost 20%. But last week, shares of the company fell 22% after it missed earnings expectations, causing the stock to trade below its IPO price of $15.03. Etsy shares have fallen 27% in the last 3 months compared with the S&P 500’s loss of 1%. The move constituted a turnaround from the pronounced decline that began almost as soon as the company entered the public markets in April. Part of the buying in recent days can be attributed to short sellers covering their negative positions. Etsy has been going through the wild gyrations as Amazon looks to enter the handmade craft market and Etsy has yet to prove the long term viability of its business model.
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