Etsy Stock Tumbles Below Its IPO Price After Weaker-than-expected Earnings

Shares of online crafts marketplace Etsy Inc. tumbled 22% on Wednesday to $15.03, pushing below their $16 IPO price after weaker-than-expected second-quarter earnings. The company said its loss widened to $6.35 million, or 7 cents a share, from $3.15 million, or 8 cents a share, a year earlier. Analysts polled by FactSet were expecting a loss of 6 cents a share. Adding to the gloom, Etsy said it expects currency exchange rates to negatively affect gross merchandise sales in the third quarter, and that it plans to spend more on marketing and hiring. Shares peaked at $35.74 on their very first day of trade in April, but have not regained that level since then.