Etsy shares fall after Citron Research calls out platform for fake goods | – #Etsy #shares #fall #Citron #Research #calls #platform #fake #goods
Feb 16 (Reuters) – Citron Research sent shares of e-commerce firm Etsy Inc ( ETSY.O ) down about 6% on Thursday, saying it has become one of the world’s biggest platforms for counterfeit goods.
Etsy did not immediately respond to Reuters’ request for comment.
Citron Research, which has built its reputation in the research industry by calling out underperformers and betting against their stock, said the percentage of fake goods on the platform had grown too high and Etsy could no longer defend it as a small percentage of revenue.
The research firm alleged that Etsy allowed sellers on the platform to purchase brands’ “advertising words” and then labeled many of them as legitimate websites.
Founded by Andrew Left, Citron, Etsy’s Federal Trade Commission, Department of Justice, USA Securities and Exchange Commission as well Customs and added risks associated with Border Patrol.
Some analysts of Etsy holiday expects to see a poor quarter as lower-income consumers curb spending on household goods, apparel, jewelry and accessories, which together account for about 60% of the company’s total merchandise value.
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In November, the e-commerce platform posted its third-quarter loss for the first time in eight quarters, driven by higher shipping costs and strong dollars suffered damage.
Reporting by Ananya Mariam Rajesh in Bengaluru; Edited by Krishna Chandra Eluri
Our standards: Thomson Reuters Trust Principles.
2023-02-17 01:45:59
Source – reuters
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