Etsy is an e-commerce market place for handmade and vintage items. Its stocks are now trading at 66% off their peak prices, while they were posting records during the pandemic amid booming e-commerce business and the selling of collectables online in particular.  While the world was recovering from the pandemic, revenues dropped significantly. The company reported revenues up by 12.6% year-on-year to $807 million in the last three months of 2022. Wall Street is expecting its revenues to rise only by 8% during 2023. The turnover dropped by 4% over the Q4 2022 on growing revenues from rising fees for sellers. This source of incomes could hardly be considered sustainable. The company has obtained 9.5 million extra users, which is a 51% rise compared to the Q3 2022. This is very positive for the company but revenues are still far from pandemic levels.  Large marketing costs slashed the company’s margins. The company still generates profit, but its EBITDA dropped by 290 basis points to 27.9%. Marketplace continues to be number one in the sector despite continuous efforts by some giants like Amazon to enter this niche market, without much success. Nonetheless, long positions for ETSY stocks without significant positive developments in revenues or incomes are a major risk. It is worthwhile to monitor the company as it may turn out to be a successful story.