Etsy Stock Falls 19% Ahead Of Open

Shares of Etsy Inc. fell more than 19% in premarket trade, putting them on track to open at their lowest level in their five-week history, as investors reacted to a huge earnings miss in its first quarterly report as a public company. Wedbush reiterated an underperform rating on the stock Wednesday morning and lowered its price target to $13 from $14, saying decelerating revenue and compressed margins may get exacerbated down the line as the company "grapples with the impact" of recent allegations from Wedbush that more than two millions items on its site may be counterfeit or constitute trademark or copyright infringement. While analyst Gil Luria said he expects Etsy to enjoy "rapid near-term growth" within its homemade goods e-commerce niche as it increases marketing spend, he believes the dilution of the brand will "curtail listing and revenue growth." Shares of Etsy were on track to open around $17, a dollar above its $16 IPO price set in mid-April.