Why Etsy Stock Popped Today

Shares of** Etsy **(ETSY +9.57%) climbed on Thursday after the e-commerce platform agreed to sell its secondhand clothing business to eBay (EBAY +2.97%).

By the close of trading, Etsy’s stock price was up more than 9%.

Image source: Getty Images.

A mutually beneficial asset sale

Under the terms of the deal, eBay would purchase Etsy’s consumer-to-consumer fashion marketplace, Depop, for $1.2 billion in cash.

The re-commerce platform is popular among Gen Z and Millennial customers, with 7 million active buyers – mostly under the age of 34 – and over 3 million sellers.

Depop’s annual gross merchandise sales surged almost 60% in the U.S. in 2025, reaching roughly $1 billion worldwide.

“Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and we are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities,” eBay CEO Jamie Ianonne said in a press release.

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NYSE: ETSY

Etsy

Today’s Change

(9.57%) $4.21

Current Price

$48.27

Key Data Points

Market Cap

$4.3B

Day’s Range

$44.97 - $49.67

52wk Range

$40.05 - $76.52

Volume

686K

Avg Vol

3.5M

Gross Margin

72.24%

Refocusing on its core business

Selling Depop will enable Etsy to concentrate its efforts on expanding its e-commerce marketplace for unique and creative goods. The $1.2 billion in cash it expects to receive is equal to about a quarter of its current market capitalization. Etsy plans to use the cash to fund its growth initiatives and to buy back its stock.

“We believe this transaction is a great outcome for Etsy’s shareholders, and a positive next step for all involved,” Etsy CEO Kruti Patel Goyal said.

The sale is projected to close in the second quarter of 2026, subject to regulatory approval.