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No. of Recommendations: 18
What I like about Etsy, I have a 4% position:

1) Smallish market cap - only 18 Billion with an estimated TAM of 100 Billion, could even be as high as 1 Trillion.

2) Defensible Niche - it's mission is to keep commerce human. Etsy is continuing to establish itself as the dominant player in the niche and handcrafted market. It is the anti-amazon in that its sellers are largely individuals making things out of their house. If you dislike the dark lord dominating the universe (Amazon), buy Etsy and support the little guy. :)

3) Lack of competition - amazon, e-bay, and shopify are not focused on custom products, this allows Etsy to dominate its niche.

4) Strong and recurring ad revenue - Etsy ads offers advertising on third party websites in exchange for 15% of revenue. The seller benefits from having a large presence in Etsy doing the advertising. Etsy can justify the large fee because the seller's products are unique and the price is not driven by low-profit competition. They are not the cheap, made-in-China products that are seen all over shopify, amazon.com, and eBay.

5) Pandemic tailwind - the majority of folks who bought a mask came back within a month and bought something else. Brand awareness is on the rise. It's the right company at the right time.

6) High Gross Margins - in the 70's.

7) Optionality - Etsy is expanding its categories and it acquired Reverb last year. I see omni- channel potential.

8) International expansion- pre-pandemic they were focused on 6 core countries, now they have changed the focus to 40 plus countries.

9) Strong forecast -
Etsy has forecasted for up to $513 million in revenues in Q4, an increase of 12% from Q3.
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