We recently announced a list of the 10 Best High Interest Stocks to Buy Now. In this article, we're going to look at where Etsy Inc. (NASDAQ: Etsy) stands against other high short interest stocks to buy now.
Aditya Bhave, Bofa Securities Head of US Economics, joined 'Power Lunch' on CNBC on April 17 to talk whether tariffs are ultimately inflation, disinfecting or deflation. Aditya Bhave responded that the effect depends on the size of the uncertainty shock. He explained that tariffs are generally deadly, which means they contribute to inflation and economic stagnation. However, he also emphasized that it is not just the inclusion of the trade policy announcements, but also the disruptive way in which these policies have communicated, which has increased uncertainty for businesses. He noted that there was a scenario where the uncertainty caused by these policies could outweigh their effects of stagnation -dra, making tariffs disinfect instead. Bhave also referred to Fed Chairman's recent Hawkish comments Jerome Powell and drew a parallel to Powell's stance during the 2021–2022 rate hiking cycle.
Powell's assertion highlighted that continuous full employment is not possible without price stability, which is a justification that Powell previously used for aggressive rate hikes even during a technical recession. Bhave believes that the Fed is likely to maintain its focus on price stability and continue its current policy approach in the near term. Earlier during the Covid-19 pandemic, the Fed and Powell specifically responded, specifically to a supply chain disturbance caused by tariff by aggressively stimulating the economy. Bhave argued that this aggressive response came after and not during the initial supply chain disturbance, and although the Fed could have acted a little late, it eventually raised rates suddenly 425 base points in one year. He does not expect the Fed to repeat such aggression, but believes that the case over rates are still constantly strong at present.
We first moved through stock screeners to find companies with short interest between 10% and 25%. We then selected the 10 stocks that were the shortest to shorten April 16, but at the same time we were popular with elite hedge funds and that analysts were bullish. The stocks are listed in the ascending order of the number of hedge funds with poles in them, such as CH4 2024.
Why are we interested in the stocks to which money accumulates? The reason is simple: our research has shown that we can outperform the market by imitating the main stock options of the best hedge funds. Our quarterly newsletter strategy selects 14 small cap stocks and a large cap every quarter and has returned 373.4% since May 2014, beating its 218 percentage point benchmark (sEg more details here).
AI Etsy Inc. (NASDAQ: ETSY) is the best high short interest stock to buy now?
A young woman shopping for a vintage fashion item on -lein.
Short % of float from April 16: 19.45 %
Number of Hedgerow Fund Holders: 58
Etsy Inc. (NASDAQ: Etsy) operates two-sided markets online that connect buyers and sellers worldwide. It acts through three segments: Etsy, reverb, and Depop. It mainly operates the Etsy market that links craftsmen and entrepreneurs to various consumers. It also offers a reverb, which is a musical instrument market, and a Depop, which is a fashion resale market.
Etsy Market is central to the company's growth, but faced challenges in 2024, with GMS (gross commodity sales) declining 8.6% year -on -year in Q4. For the full year, Etsy Marketplace GMS was down 4% from 2023 and reached $ 12.6 billion for the combined entity. This underperformance is partly attributed to prioritize longer -term customer experience improvements over almost conversion driving experiments in the season.
Despite GMS decline, Etsy Market led a combined record revenue of $ 2.8 billion, which was up ~ 2% year -on -year. This was achieved through initiatives such as Etsy Ads and Combined Payments. At CH4 alone, combined revenue increased by 1.2% year -on -year to the peak of $ 852 million. The company's strategy for 2025 focuses on focusing on the discrimination of Etsy Inc. (NASDAQ: Etsy) by emphasizing its unique selection of over 100 million creative goods.
Oakmark Global Fund noted the following regarding Etsy, Inc. (NASDAQ: ETSY) in its Q2 2024 Investor letter::
“Etsy, Inc. (NASDAQ: Etsy) is a world -wide market for unique and creative goods that connect millions of buyers and sellers worldwide. We started taking an interest in Etsy in 2017 when Josh Silverman took over as CEO and began to transform the company of being a borderline not -for -profit into a higher, faster growing enterprise. The Covid-19 pandemic has already accelerated the company's strong basic consequences as millions of new customers flocked to the platform, but like many other Covid-19 beneficiaries, Etsy has fallen deeply in favor of. In our view, today's investors focus too much on the timing of Etsy's return to growth and ignore the company's positive long -term forecast. We believe that the macro environment for Etsy's product categories will ultimately improve and Etsy is about to benefit. At the same time, we believe that continuous push of Etsy to international markets can provide a solid source of long -term revenue growth. After the recent sale, we were able to buy shares for a reduction in our estimate of inherent value. “
Together, Etsy is a 4th position On our list of the best high short interest stocks to buy now. While we recognize the potential of Etsy's growth, our conviction lies in the belief that AI stocks are very promising for achieving high returns and doing so within a shorter timetable. There has been AI stock that has risen since the beginning of 2025, while popular AI stocks lose about 25%. If you are looking for AI stock more promising than Etsy but trading at less than 5 times its earnings, check out our report for the Cheapest AI Stock.
