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Update 8:10pm: Adds Etsy comment.
Etsy Inc. (NASDAQ:ETSY) fell 8.4% following a negative report from Citron Research on the online merchandise platform.
Citron alleges that Etsy (ETSY) isn’t doing enough to police possible counterfeit goods from being sold on its site.
An ETSY spokesperson responded to the Citron report in a statement emailed to Seeking Alpha.
“Etsy is proud to be home to millions of unique, handcrafted, and customized goods, and the integrity of our marketplace is critical to our business,” the Etsy spokesperson said in the statement. “We are dedicated to fostering a trusted and safe platform, and as Etsy has grown, we have increased investments in a variety of sophisticated tools to protect our community against bad actors. Counterfeit items, fraud and other illicit practices are explicitly prohibited on Etsy, and our dedicated teams work diligently to remove listings that violate our policies.”
The report on Etsy comes as short seller Citron Research has largely stayed away from publicly shorting stocks since the meme stock crazy started in early 2021. Citron’s founder Andrew Left said in January 2021 said he would no longer publish short reports after doing so for the previous 20 years.
Etsy (ETSY) didn’t immediately respond to Seeking Alpha email request for comment. Etsy short interest is 10%.
Etsy (ETSY) is scheduled to report Q4 results on Wednesday.
Citron has largely been doing bullish research and tweets in recent years, including a tweet on ContextLogic (WISH) on Monday, which sent its shares surging 37%.
