Publicly traded arts and crafts bazaar Etsy ($ETSY) storms into Europe with a strategic partnership and referral agreement with current online marketplace DaWanda.
The wind-down process has begun and DaWanda will cease internet operations on August 30th, 2018, and will migrate its sellers to the Etsy platform, giving the already massive marketplace increased exposure to DaWandas buyers.
With this agreement being more of a referral partnership and affiliate relationship, Etsy isn’t taking over any of DaWandas assets, just migrating in what could be looked at as a huge affiliate marketing play, with Etsy doing all of the heavy lifting, and DaWanda sitting back and collecting a small percentage off each sale.
Etsy has had a while year, with a 52-week low of ~$13, and a 52-week high of $45.88, with current share price at $42. This $5b market cap company shows no slowing down, and opening up opportunities like this on a global scale, and adding accounts like this show smart thinking on managements part.
How you make money on homemade goods
Etsy currently shows some interesting patterns, but could experience a pullback to as much as $35 a share, at which case it would be a fantastic buying option. Making money at the current levels could include shorting the stock, or buying put options. A January 18th 2019 Put at a Strike Price of $35 would cost you $302.70 (depending on your brokerage and option contract trade price). If the stock price falls to $35 by October 16th, you would stand to make $102 on your trade, or a profit of over $100 ($103, depending again on trade costs), a 50%+ return on your investment.
Keep an eye on this baked goods and craft bonanza, as it is building the fundamentals of a powerhouse in the maker movement.