Etsy: Flurry of Leadership Changes Doesn't Alter Our Constructive View of Battered Firm's Prospects

Wide-moat Etsy disclosed a flurry of leadership changes on Dec. 5, 2024, although we wouldn't expect any wholesale changes—at least immediately—to the firm's current strategy. The most consequential change is the appointment of Charles Baker as CFO following Rachel Glaser's retirement announcement, with Baker previously serving as the CFO for Eventbrite. Concurrently, the firm announced the promotion of Kruti Patel Goyal, previously in charge of Depop, to the role of president and chief growth officer; the departure of Raina Moskowitz, the chief operating and marketing officer; and what appears to be the termination of Chief Technology Officer Rachana Kumar. We maintain our $100 fair value estimate for Etsy and view shares as deeply undervalued, with the market badly underestimating the firm's ability to return to growth after a challenging few years for consumer discretionary goods spending. We also maintain our Standard Capital Allocation Rating.