Etsy Sees Strong Sales Potential with AI-Driven Search and Product Updates

Etsy (ETSY) may meet its high-end gross merchandise sales target due to improvements in artificial intelligence search tools and product updates, according to Oppenheimer. The brokerage upgraded Etsy's stock rating to 'outperform' from 'perform', setting a $90 price target.

A recent survey of 2,500 US consumers found that 88% preferred shopping directly on Etsy's website or app instead of using Google Search. This suggests a strong competitive advantage and reduced dependence on search engines.

Oppenheimer also reported that about 25% of buyers mentioned improvements in search, product selection, or item descriptions as reasons for their purchases. However, the analysts cautioned that reactivating and adding new buyers remains challenging.