NEW YORK (TheStreet) -- Etsy (ETSY) shares continue to fall sharply in early market trading Wednesday, down 23.71% to $16.02 after falling double digits in after-hours trading on Tuesday, following the release of its first quarter earnings results yesterday.
The Brooklyn, NY-based online retail marketplace reported a first quarter net loss of 84 cents per share that was much wider than the break even quarter analysts' had forecast for the company. Revenue for the quarter increased 44.4% year over year to $58.8 million, topping analysts' $58 million expectations.
The company attributed $31.5 million of its $36.6 million net loss to non-operational costs tied to its global expansion, including a $10.5 million increase in the company's tax provision and a non-cash currency exchange loss of $21 million.
Analysts at Brean Capital remain bullish on the company's prospects today and see the pullback as an attractive entry opportunity however, reiterating the firm's "buy" rating and maintaining a $23 price target on the company's shares.
"In our view, management's ability to drive seller services revenue (from advertising, payments, and shipping) will be one of the keys to the stock's long-term success, as it will enable the company to generate much higher revenue from its platform vs. only its marketplace effort," analysts said. "Etsy operates a differentiated marketplace and has multiple levers to pull to drive sustainable long-term sales growth and adjusted EBITDA margin expansion."