Shares of Etsy (NASDAQ:ETSY) were moving higher today as the stock spiked in sympathy with a strong earnings report from fellow e-commerce operator Wayfair and on hopes for its own earnings report, which is due out after the market closes tomorrow.
As of 11:17 a.m. EDT, the stock was up 10.7%.
Today, Wayfair stock surged as much as 35% as the online home-goods seller beat estimates in its first-quarter earnings report. The company said tailwinds from the coronavirus-fueled stay-at-home economy and the shift to e-commerce were persisting into the second quarter.
The news helped lift shares of e-commerce stocks including Shopify and Etsy and echoed comments from Amazon and other retailers earlier. A recent earnings report from XPO Logistics, a last-mile carrier of heavy goods, also said e-commerce growth had been strong through the crisis.
Etsy shares have been on a tear since management reassured investors in the beginning of April, saying the company was well positioned to manage through the crisis thanks to its variable-cost model and its e-commerce positioning. Shares have now more than doubled from the beginning of April, reaching all-time highs.
The stock also seemed to benefit today from a rally in the broad market; the S&P 500 was up 1.8% in late-morning trading on investor enthusiasm about the U.S. economy reopening and better-than-expected earnings reports from a number of companies.
For Etsy's first-quarter earnings report, analysts are expecting revenue to have grown 30% to $220.2 million and see earnings per share dipping from $0.24 to $0.18. Management had earlier warned that sales had slipped in some categories like weddings and jewelry during March as consumers shifted their focus to buying essentials, though some categories, like puzzles and games, had seen an uptick in sales.
Keep an eye out for commentary on second-quarter performance and trends, which should guide the stock after the report, because the market has high expectations for Etsy stock following its recent surge.