- Etsy jumped as much as 10% on Tuesday after Elon Musk, the world’s wealthiest person, touted the company on Twitter.
- The Tesla founder said he “kinda loves” Etsy, prompting a sharp rally in pre-market trade.
- Etsy is an online marketplace where independent creators can sell handmade goods.
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Etsy shares rose 10% in pre-market trading on Tuesday after billionaire Elon Musk tweeted about how he loves the online marketplace.
“I kinda love Etsy,” Musk said in a tweet early Tuesday, adding that he bought a hand-knit woolen ‘Marvin the Martian’ helmet for his dog.
Although the Tesla founder didn’t comment on Etsy’s financial prospects, its stock surged within minutes of Musk publishing his tweet.
Shares closed at $208.81 on Monday, but were trading around $228.85 per share in pre-market as of 7:45 a.m. ET.
Insider’s Meira Gebel reported the 15-year-old online marketplace competes with brands like Shopify, Big Cartel, and Amazon Handmade, but has grabbed its own niche in the market thanks to a seller pool that is made up of over 80% women. As of 2020, Etsy had more than 3.8 million sellers on its platform, up 51% year-over-year from 2.4 million, according to data from Marketplace Pulse.
According to its latest earnings report, the company generated revenue of about $451 million, up from $428.7 million in the previous quarter.