Online Handicraft star up earns well on the stocks market
The hand-crafted good used to be very unattractive for e-commerce. Reasons like slow production, the nature of goods and less professional producers made it difficult for manufacturers to sell it online. The online marketplace for hand-crafted good is finally here in the form of Etsy Inc. But the company is having tough time on the stock market and they must have learned the unpredictability of the markets in its debut. The shares fell by whooping 20 percent during initial hours of trading itself.
The market value of this innovative company reduced by around $460 million and the shares are not doing that great as expected. The per share value is just 86 cents more than what it had been in the month of April. The company went ahead with its initial public offering in April with starting price of $16. The strong position of US currency is costing lot to the revenue because large-scale merchandise sales are many times listed in US dollars and even if the seller is located abroad, the rates are shown in USD. The company has shocked the market experts, as the in its debut day the Etsy has reported 88 percent gain on the stock market. Many start-ups and newly established companies are thinking about going public but scared of doing so because it will make them accountable to the investor and comes with an obligation to report quarterly earnings.
These aspiring stock market entities can learn from the Etsy. The first quarter revenue of the Brooklyn based company were around $58.5 million, a little bit more than the projections of analysts.