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Update 8:10 pm: Add a comment from Etsy.
Etsy Inc (NASDAQ:ETSY) fell 8.4% following a negative report from Citron Research on the online merchandise platform.
Citron alleges that Etsy (ETSY) is not doing enough to control possible counterfeit products sold on your site.
An ETSY spokesperson responded to Citron’s report in an emailed statement to Seeking Alpha.
“Etsy is proud to be home to millions of unique, handmade and personalized products, and the integrity of our marketplace is critical to our business,” an Etsy spokesperson said in the statement. “We are dedicated to fostering a trusted and secure 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 illegal practices are explicitly banned from Etsy, and our dedicated teams work diligently to remove listings that violate our policies.”
He report on Etsy comes as short seller Citron Research has largely stayed away from publicly shorting stocks since the meme stock craze began in early 2021. Citron founder Andrew Left said in January of 2021 that it would no longer publish short reports after doing so for the previous 20 years. .
Etsy (ETSY) did not immediately respond to Seeking Alpha’s email request for comment. Etsy’s short interest is 10%.
Etsy (ETSY) is scheduled to report fourth quarter results on Wednesday.
Citron has been doing largely bullish research and tweets in recent years, including a tweet about ContextLogic (WISH) on Monday, which sent its shares up 37%.
