By Koyena Das and Neil J Kanatt Feb 19 (Reuters) - Etsy shares jumped about 10% on Thursday, after the online marketplace sold off its Gen Z-focused fashion resale platform Depop to EBay, with investors looking past dour quarterly results and forecasts.

Etsy has agreed to sell second-hand fashion platform Depop to eBay for $1.2 billion, marking a strategic shift for both companies in the growing re-commerce market.

But from a pure UX and design standpoint, Depop is far outperforming its competitors by taking its major design cues from popular social media apps. And for a digitally native generation that’s used to doing most of their shopping online, that makes a big difference.

Etsy logged lower profit in the fourth quarter, despite an uptick in revenue.

At the time, Etsy, the digital marketplace that allows small artisans and designers to reach a mass market of consumers, took note of the trend. And in 2021, Etsy bought Depop, a popular secondhand clothing app, for $1.6 billion as tech valuations soared.

Online marketplace Etsy (NYSE:ETSY) in Q4 CY2025, with sales up 3.5% year on year to $881.6 million. Its non-GAAP profit of $1.34 per share was 1.8% below analysts’ consensus estimates. Is now the time to buy ETSY? Find out in our full research report ...

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