Etsy expands its presence in Latin America

Etsy (ETSY.US) stock jumped 6% after the online marketplace for arts, crafts announced that it will acquire Brazil’s Elo7 for $217 million in cash. Elo7 is a market for handmade and unique items that includes items from over 40 retail categories such as wedding, baby, home decor. “Elo7 is expected to provide Etsy with a local brand in the fast-growing Latin American market, where e-commerce penetration is less than 10%. And Brazil is the largest e-commerce market,” Etsy said. The transaction is likely to close during Q3 of 2021. The Latin American e-commerce market is expected to reach $29 billion this year. Also Elo7 is expected to be revenue-neutral to Etsy in the near-term.

Etsy (ETSY.US) stock broke out from a tight consolidation zone last week and upward move is being contined today. Stock broke above the major resistance at 192.38 and if buyers will manage to uphold momentum then upward move may be extended towards resistance at $226.00. Source: xStation5