It's not just Etsy's stock that's up, but also the stock of Shopify, Amazon, Overstock, Walmart, Ebay, etc. And all the tech infra companies that support these ecommerce sites.
There's a huge ecommerce bubble, and to a degree a tech bubble, being driven by all that disposable income that used to go to restaurants, travel, events, etc. instead being redirected to online shopping and online activity. Compounded by the money being printed by Fed which also doesn't have a lot of places to go.
I doubt it's sustainable to expect that this is the new normal and nobody will want to go back to the way life was before. If that's the case, I can't understand how the PE ratios that imply someday the future value of these companies will be worth 100x-1000x multiples in 10-20 years are justified. But this has lead to an incredible transfer of wealth to a lot of tech companies. I just wonder when the party will end and we'll see a correction?
There's a huge ecommerce bubble, and to a degree a tech bubble, being driven by all that disposable income that used to go to restaurants, travel, events, etc. instead being redirected to online shopping and online activity. Compounded by the money being printed by Fed which also doesn't have a lot of places to go.
I doubt it's sustainable to expect that this is the new normal and nobody will want to go back to the way life was before. If that's the case, I can't understand how the PE ratios that imply someday the future value of these companies will be worth 100x-1000x multiples in 10-20 years are justified. But this has lead to an incredible transfer of wealth to a lot of tech companies. I just wonder when the party will end and we'll see a correction?