Etsy stock drops amid negative report from Citron Research (NASDAQ:ETSY)

Replace 8:10pm: Provides Etsy remark.

Etsy Inc. (NASDAQ:ETSY) fell 8.4% following a unfavourable report from Citron Analysis on the net merchandise platform.

Citron alleges that Etsy (ETSY) is not doing sufficient to police attainable counterfeit items from being offered on its web site.

An ETSY spokesperson responded to the Citron report in an announcement emailed to Searching for Alpha.

“Etsy is proud to be house to hundreds of thousands of distinctive, handcrafted, and customised items, and the integrity of our market is essential to our enterprise,” the Etsy spokesperson mentioned within the assertion. “We’re devoted to fostering a trusted and secure platform, and as Etsy has grown, now we have elevated investments in quite a lot of refined instruments to guard our neighborhood in opposition to dangerous actors. Counterfeit gadgets, fraud and different illicit practices are explicitly prohibited on Etsy, and our devoted groups work diligently to take away listings that violate our insurance policies.”

The report on Etsy comes as quick vendor Citron Analysis has largely stayed away from publicly shorting shares for the reason that meme inventory loopy began in early 2021. Citron’s founder Andrew Left mentioned in January 2021 mentioned he would not publish quick stories after doing so for the earlier 20 years.

Etsy (ETSY) did not instantly reply to Searching for Alpha electronic mail request for remark. Etsy quick curiosity is 10%.

Etsy (ETSY) is scheduled to report This autumn outcomes on Wednesday.

Citron has largely been doing bullish analysis and tweets lately, together with a tweet on ContextLogic (WISH) on Monday, which despatched its shares surging 37%.