NEW YORK (TheStreet) -- Shares of online arts and crafts marketplace provider Etsy (ETSY) took a dramatic plunge Wednesday after the company's posting of disappointing first-quarter results. This marked the company's first quarterly release since going public with great fanfare last month. The CNBC "Fast Money Halftime Report" trading panel weighed in on whether the Etsy news is the harbinger of an Internet bubble -- one that's about to implode.
The newly minted public company had priced its shares at $16 for its IPO only to have its stock close at $30 on the first day of trading. Yet on Wednesday during intra-day trading, Etsy's share price declined to $15.70, on the heels of the company's first-quarter performance. Etsy had a net loss of 84 cents a share on revenue of $58.5 million, although analysts had expected a net profit of 3 cents a share on $59 million in revenue.
So, given Etsy's recent performance and that of online-storage company Box (BOX),the CNBC panel was asked if investors are facing another Internet bubble. Box's stock traded at $23.15 on its first trading day after the company priced its shares at $14 for its January IPO. The share price is now only in mid-$16 range.
"Etsy is not indicative of what is going on" with Internet IPOs," said Josh Brown, CEO of Ritholtz Wealth Management.
Stephen Weiss, managing partner of Short Hills Capital, characterized the current situation as one of investors chasing the hot names of pre-IPO companies and then jumping on them when they go public without doing their homework to research the company's financials. Said Weiss: "The market is in great shape. This Etsy [post-IPO performance] is meaningless)."