There goes Etsy.
In early trading on Monday, shares of the online craft marketplace fell more than 10% to as low as $US19.36.
Etsy shares surged 32% on Friday after Google mentioned the company during its earnings call. Specifically, Google chief business officer Omid Kordestani said “developers like Etsy are really seeing a boost in traffic as a result of deep linking.”
What that means is that searches for items on Etsy are linking better to pages where they can be bought.
Friday’s rally was Etsy’s biggest since its IPO, according to Bloomberg.
But now, the stock is sinking, and is down 34% from the April 16 IPO when it surged 87%. The stock has large short interest — or bets that its share price will decline. About 9 million shares, or 8%, are sold short, compared to an average of 2.2% for the S&P 500, according to Bloomberg.
Here’s a chart of the rally on Friday and today’s price action:
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