Etsy shares purchased on the open market during its stock-trading debut last week tumbled in the subsequent two trading sessions.
Shares of the online marketplace for crafts and vintage items opened at $31 last Thursday, the day they made their Nasdaq debut, and climbed above $35 later that morning, more than double the firm’s $16 IPO price.
But by Monday, two days after their debut, shares closed trading at $24.90, falling about 20% from their opening price. They were up 0.7% at mid-day Tuesday, to $25.07.
That initial excitement, however, appears to have quickly petered out.
Etsy’s IPO stood out in part because of the vast number of small investors who had the opportunity to scoop up shares. The company veered away from tradition by setting up a program that gave small investors the opportunity to buy as much as $2,500 in Etsy stock in its IPO.
In the program, which sold shares through a special website created by Morgan Stanley, retail investors had the ability to sell the shares whenever they wished. Morgan Stanley lowered its usual commission for retail investors that participated in the program who wanted to sell the stock to seven cents a share.
A Morgan Stanley spokeswoman declined to comment.
On Friday, Etsy fell to the fourteenth-most traded stock among TD Ameritrade customers.
And JJ Kinahan, chief strategist at TD Ameritrade, said he expects the stock has fallen further in popularity this week.
“Yes it’s the most interesting IPO in a little bit, but I don’t see a sustainable interest behind it,” he said.
–Michael Wursthorn contributed to this article
(Repost from WSJ)
Below is the comment from StartupsGrid.com
Etsy was initially started at price $16, but was sold at $30 in its initial IPO. With nearly 20% down, Etsy stock has started to show bullish growth, but many investors have noted cautious on the investment. NASDAQ data on Etsy is available below.
Since Etsy stock has only been listed less than 1 week, you won’t see the stock price within Google readily. Use either the NASDAQ or StockTwit to watch the $ETSY.
Check out other related Etsy IPO and stock news:
AP News – http://www.mlive.com/news/index.ssf/2015/04/etsy_stock_price_surges_at_ini.html
CNN – Etsy now worth $8 Billion