Key Stats for Etsy Stock
- 1-day Price Change for Etsy stock: 16%
- Current Share Price: $74
- 52-Week High: $76
- $ETSY Stock Price Target: $65
What Happened?
Etsy (ETSY) stock jumped nearly 16% on Monday after OpenAI announced a partnership that lets ChatGPT users buy products directly through the AI chatbot.
The new feature, called Instant Checkout, launches first with Etsy before expanding to over one million Shopify merchants.
This is a notable development for Etsy, as ChatGPT has more than 700 million weekly active users, and OpenAI reports that a substantial portion of these users are asking shopping-related questions.
Now, instead of just browsing recommendations, they can complete purchases without ever leaving ChatGPT.
Here’s how it works: If you’re chatting with ChatGPT and it recommends an Etsy item, you can purchase it directly.
OpenAI built the technology in partnership with Stripe, so if you’re already a ChatGPT subscriber with your payment information stored, checkout is instant. The feature is available now to U.S. users on ChatGPT Plus, Pro, and Free plans.
OpenAI charges a transaction fee, although the company hasn’t disclosed the amount. For OpenAI, this could become a significant revenue stream as the company works toward achieving profitability. For Etsy, it’s a massive new distribution channel that meets shoppers exactly where they are.
The timing couldn’t be better for Etsy. CEO Josh Silverman has been pushing hard to make Etsy the starting point for shopping journeys, not just the last resort when you can’t find something elsewhere.
The company has been investing heavily in AI and machine learning to enhance product recommendations and assist shoppers in discovering items they may not have known they wanted.
Etsy’s app now features continuous scroll discovery feeds, similar to what turned around sister brand Depop’s growth trajectory.
Etsy has shifted its marketing spend away from linear TV and toward TikTok and YouTube to reach shoppers earlier in their discovery process, and the ChatGPT integration aligns perfectly with that strategy.
See analysts’ growth forecasts and price targets for Etsy stock (It’s free!) >>>
What the Market Is Telling Us About Etsy Stock
The 16% jump in Etsy stock shows investors believe this partnership could meaningfully accelerate growth.
Etsy has been navigating a challenging period since its COVID-19 boom. The company grew from $5 billion in gross merchandise sales in 2019 to $11 billion in 2024; however, growth has been relatively flat since the pandemic.
Today, the market appears optimistic about Etsy’s broader AI initiatives, as the company utilizes generative AI to identify the most artisanal items, personalize recommendations based on individual tastes, and make non-obvious product connections.
These are problems uniquely suited to Etsy’s 120 million unstructured product listings that don’t map to a traditional catalog.
Etsy stock hitting a fresh 52-week high suggests investors are reassessing the company’s growth potential.
Silverman pointed out that when he joined in 2017, people said Etsy had reached its full market potential at $2.5 billion in sales. The company proved them wrong by more than quadrupling that.
Now the same doubts are surfacing again at $11 billion, and Silverman is betting AI will prove the skeptics wrong once more.
For investors, the question is whether Etsy can sustain this momentum and convert ChatGPT traffic into loyal repeat buyers.
If the company executes well, this partnership could mark an inflection point similar to when Amazon first integrated with Alexa for voice shopping.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
