Shares of e-commerce giant Etsy Inc. skyrocketed by as much as 37 percent on Friday after Google Inc. commented on the company specifically, naming it one of the developers enjoying a boost in search engine traffic from the search giant’s updated search engine ranking algorithms, MarketWatch reported.
The commentary came from Google’s chief business officer, Omid Kordestani, who made the comments while on a conference call on Thursday.
Mr. Kordestani referenced his company’s efforts in indexing to aid in third-party app searches. In regards to Etsy, he stated that such companies “are already seeing a boost in traffic as a result of deep linking.”
Developers like Etsy are already seeing a boost in traffic as a result of deep linking
Wedbush Securities analyst Gil Luria was quoted by MarketWatch as having said that Google’s “compliment” came right out of left field.
After jumping by as much as 37 percent, all the way up to $23.10 a share earlier in the session, Etsy’s shares were up by 27 percent, resting comfortably at $21.42 in recent trade — which is actually down some 23 percent from their close on the first day of trade following their public debut back in April.
The traffic boost presently being enjoyed by the online artisan marketplace comes as a result of a boost in mobile-search engine traffic from Google, Bloomberg Business reports.
The latest rise marks the Brooklyn-based company’s most significant jump since its April 16 IPO.
Etsy offers a platform for artists to sell their homemade and vintage products, which range from jewelry and other apparel to wall art.
Bloomberg Business notes in a recent report on the matter that the sudden spike may be creating a short squeeze in which trades betting against the company have to cover their positions at the higher price, resulting in swings in the stock.
Analyst Luria referred to the “slightly better Web traffic this month” as something which “seems to be helping today.” All the same, Luria stated that such a slight increase in traffic simply “doesn’t change the significant challenges” that the company must face over the next couple of years.
It seems like a little bit of good news from Google has turned into a big rally through hastened short covering (…) Clearly having slightly better Web traffic this month doesn’t change the significant challenges Etsy has to face over the next couple of years, but it seems to be helping today.
What do you think, is Etsy a company you would invest in?
