Shares of Etsy Inc (NASDAQ: ETSY) have already doubled versus their year-to-date low but Jim Cramer remains convinced that the strength will continue in the coming months.
A day earlier, Fed Chair Jerome Powell signalled a 50-bps increase in December and said he was still hopeful of a soft landing. That painted somewhat of a rosy picture for the tech stocks, including Etsy.
Cramer is particularly bullish on this eCommerce name for the unique experience it offers to the online shoppers. On CNBC’s “Squawk on the Street”, he said:
People tasted Etsy during the lockdown and decided this is how I can buy a present that isn’t like everybody’s preset. I want to continue to watch Etsy as being very much like a department store of stuff that you can’t buy anywhere else.
For the year, Etsy stock is still down nearly 35% – so it continues to be attractive in terms of valuation.
Last month, Etsy reported its financial results for the third quarter that topped Street estimates by a significant margin and issued upbeat guidance for the future.
In the league of beaten down tech companies, Cramer likes Etsy Inc the best.
Of companies like Airbnb and Uber and Lyft, Etsy is the one really holding up. Etsy price target raise has become the theme. Etsy, I think, is one of the rare companies that makes the comeback.
His constructive view is in line with Wall Street that currently has an “overweight” rating on the Etsy stock. Last week, Jim Cramer recommended buying Shopify Inc as well (find out more).
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