Key Points
Hussman added 42,000 Etsy shares; estimated trade size $2.56 million based on quarterly average price.
Quarter-end Etsy position value rose by $1.87 million, reflecting both new purchases and stock price changes.
The transaction represented a 0.62% shift in reportable AUM.
Post-trade stake: 84,000 shares valued at $4.66 million.
Etsy accounts for 1.13% of fund AUM, making it the fund's second-largest holding.
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What happened
According to a recent SEC filing dated Feb. 2, 2026, Hussman Strategic Advisors, Inc. increased its position in Etsy (NYSE:ETSY) by 42,000 shares during the fourth quarter of 2025. The estimated value of the trade was $2.56 million based on the quarterly average share price. At quarter’s end, the fund’s Etsy holdings were valued at $4.66 million, up $1.87 million from the prior period.
What else to know
The fund’s purchase brought its Etsy stake to 1.13% of reportable AUM, making it Hussman’s second-largest holding.
- Top holdings after the filing:
- Qualcom: $4.67 million (1.13% of AUM)
- Etsy: $4.66 million (1.13% of AUM)
- Ubiquiti: $4. 65 million (1.12% of AUM)
- United Natural Foods: $4.24 million (1.03% of AUM)
- Charter Communications: $3.95 million (0.95% of AUM)
As of Jan. 30, 2026, Etsy shares were priced at $52.96, down 5.53% over the past year, underperforming the S&P 500 by 18 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 1/30/26) | $52.96 |
| Market Capitalization | $5.25 billion |
| Revenue (TTM) | $2.85 billion |
| Net Income (TTM) | $182.15 million |
Company Snapshot
Etsy:
- Operates online marketplaces including Etsy.com and Depop, offering handmade goods, vintage items, musical instruments, and fashion resale.
- Generates revenue through marketplace transaction fees, payment processing, advertising services, and value-added seller tools.
- Serves individual artisans, small business sellers, and buyers seeking unique or custom products, primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India.
Etsy, Inc. is a leading global e-commerce platform specializing in unique and creative goods, connecting millions of buyers and sellers across multiple niche marketplaces. The company leverages a two-sided marketplace model, driving growth through a combination of transaction-based fees and ancillary seller services. Etsy's differentiated focus on handmade and vintage products, supported by robust seller tools and a large active user base, provides a defensible market position within the specialty retail sector.
What this transaction means for investors
Hussman doubled down on its Etsy position, adding 42,000 shares to its existing 42,000-share stake, making the company its second-largest holding in the process. These continued purchases from Hussman are interesting, as Etsy is in the midst of a continued turnaround. The core Etsy marketplace business remains somewhat stale growth-wise, but recently delivered 300 basis points of gross merchandise sales (GMS) growth quarter over quarter. Better yet, revenue grew by 6% thanks to the company’s divestiture of Reverb and its success with onsite ads, raising Etsy’s overall take rate.
In addition to these slight improvements on the Etsy marketplace, the company’s secondhand fashion app, Depop, continues to grow by leaps and bounds. The promising unit delivered GMS growth of 39% in the third quarter, with the U.S. experiencing even faster growth at 59%. Depop now accounts for nearly 15% of Etsy’s total GMS and is quickly becoming the stock’s key growth story.
While I don’t love that stock-based compensation still accounts for 9% of sales, despite the stock’s dramatic underperformance in recent years, Etsy doesn’t need outrageous growth to live up to its low valuation of 10 times free cash flow (FCF). Even accounting for this stock-based compensation, Etsy trades at about 14 times FCF. Management has already bought back one-fifth of Etsy’s outstanding shares and looks ready to continue buying more at a discount with $1.2 billion remaining on its buyback. If the core Etsy business stabilizes and Depop continues to deliver outstanding growth, Etsy could be a winning pick for Hussman at this discounted valuation.
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Josh Kohn-Lindquist has positions in Etsy. The Motley Fool has positions in and recommends Etsy and Qualcomm. The Motley Fool recommends Ubiquiti and United Natural Foods. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
