Shares of social media company Etsy (NASDAQ:ETSY) are down nearly 15% in pre-market trading after the company provided lower than expected forward guidance and warned that the pandemic-fueled boom the company experienced over the past year is coming to an end.
Etsy reported better-than-expected second-quarter results that included earnings per share of $0.68 U.S. versus $0.63 U.S. cents expected, and revenue of $528.9 U.S. million compared to $524.7 million U.S. that analysts had forecast.
However, Etsy’s revenue growth slowed to 23.4% year-over-year during the quarter. That’s a marked deceleration from sales growth that topped 100% for each of the past four quarters.
The results underscore concerns that the pandemic bump in e-commerce activity is fading as vaccinated consumers spend less time and money online and more on travel and other services.
Last week, shares of Etsy, eBay (NASDAQ:EBAY) and Wayfair (NYSE:W) were all dragged down after Amazon gave a forecast that fell short of expectations.
Etsy, which operates an online marketplace known for handmade and personalized goods, has been one of the biggest beneficiaries of the pandemic, with shoppers turning to the site for things such as face masks and home goods.
For the current third quarter, Etsy said it expects revenue to come in between $500 million U.S. and $525 million U.S., implying a growth rate of 13.5% year-over-year at the midpoint of expectations. Analysts were looking for third-quarter sales of $527.5 million U.S.
