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What This Analyst Likes About Etsy's Depop Acquisition

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It feels like we've been continuing to have the discussion around sustainable clothing for a couple of years now.

The move away from fast fashion--shops such as Forever 21--has been happening for a couple of years now and younger generations seem more focused on thrifting or buying used clothing.

Etsy (ETSY) - Get Report, which has seen a boom in business from the pandemic, is buying Depop for $1.63 billion.

So, what does this move mean for Etsy?

"We are simply thrilled to be adding Depop—what we believe to be the resale home for Gen Z consumers—to the Etsy family. Depop is a vibrant, two-sided marketplace with a passionate community, a highly-differentiated offering of unique items, and we believe significant potential to further scale," said CEO Josh Silverman. "Depop's world-class management team and employees have done a fantastic job nurturing this community and driving organic, authentic growth in a way that aligns well with Etsy's DNA and mission of Keeping Commerce Human."

"We see significant opportunities for shared expertise and growth synergies across what will now be a tremendous 'house of brands' portfolio of individually distinct, and very special, ecommerce brands," he added.

Jeff Marks, senior portfolio analyst with Action Alerts PLUS, gives his thoughts on Etsy.

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