NEW YORK (TheStreet) -- Online arts and crafts marketplace provider Etsy (ETSY) took a dramatic plunge Wednesday after the company posted disappointing first-quarter results. Apple (AAPL) managed to stand its ground, despite an announcement by the streaming music company Spotify that it would dive deeper into the range of features it would offer music and video lovers. Yahoo! (YHOO) soared after reassuring investors it will move forward with its plans for a tax-free spinoff of its Alibaba (BABA) holdings.
Etsy cratered 18.1% to close at $17.20.
Etsy, which went public last month after pricing its IPO at $16 a share and was initially considered a success with its shares rising 86% to close at $30 on its first day of trading, took a huge hit after its earnings miss. The company, which reported its first-quarter results after the markets close Tuesday, fell as low as $15.20 a share during intra-day trading Wednesday, touching a new low and one that was below its IPO price.
The newly minted public company reported 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.
Apple ended the day down 0.01% to close at $130.06 despite an announcement by Spotify that could poise a greater rival to the iconic company's music business.
Spotify announced plans to offer a service similar to Apple's recently acquired Beats Music, in which users discover music through the technology that combines artist curation and data, according to a report in Business Insider.
According to an Associated Press report, Apple is preparing to relaunch Beats Music, which Apple acquired last year for $3 billion.
Although Apple may face more competition from Spotify on the music front, the computer maker is not letting that slow down its product release schedule. On Tuesday Apple introduced its 15-inch MacBook Pro that features a force touch trackpad, 2.2 GHz quad-core Intel INTC Core i7 processor and 16GB of memory for a starting retail price of $1,999. Apple's newly introduced 27-inch iMac with Retina 5K display also starts off with a retail price of $1,999.
Yahoo! soared 4.4% to end the session at $42.79.
The Internet company rose after it stated that its plans to conduct a tax-free spin-off of its shares in Alibaba Group are still on track, even though the Internal Revenue Service is considering a rule change, according to an Investor's Business Daily report.
Yahoo's shares tanked on Tuesday after Bloomberg noted in a report that IRS officials were toying with the idea of issuing rule changes in the way it handles spin-offs.