What happened

Shares of Etsy (NASDAQ:ETSY) rose as much as 10.7% on Tuesday, and were still up 9% as of 12:30 p.m. EST.

The stock's gain follows positive analyst commentary from KeyBanc about spending trends for the online marketplace in January. The news comes before Etsy's fourth-quarter earnings release later this month. 

Etsy website displayed on a laptop

Image source: Etsy.

So what

KeyBanc analyst Edward Yruma reiterated his overweight rating on Etsy stock on Tuesday as he maintained his prediction for the company's gross merchandise sales (GMS) to rise by more than 20% year over year in Q4. GMS growth has exceeded 20% in each of the past two quarters. 

Yruma also noted that his firm's proprietary credit and debit card database suggests "indexed spending trends at Etsy accelerated 240 [basis points] sequentially for the month of January," wrote The Fly on Tuesday.

Check out the latest earnings call transcript for Etsy.

Now what

Since Etsy's fourth quarter closed at the end of 2018, some investors may be betting KeyBanc's January data means that management will provide strong guidance for its first quarter of 2019.

Investors, of course, should tread carefully when it comes to making trades based on analyst commentary. Nothing is official until the release of Etsy's fourth-quarter results on Feb. 25.