Etsy Stock News

Handcrafted marketplace Etsy (ETSY -0.19%) reported a nearly 5% drop in gross sales on its platform when it released financial results for the second quarter of 2025. But OpenAI -- the world's most recognizable artificial intelligence (AI) start-up -- could finally give the flailing marketplace the boost that it needs.

Many things can drive a stock's price higher, fewer that can do it sustainably, and cash flow and capital return top the list. Capital return, in this case, share buybacks, can provide significant leverage for investors, but there is a catch.

Etsy's NASDAQ: ETSY new partnership with OpenAI has it on track to improve its results. The company will utilize ChatGPT to facilitate instant, AI-powered checkout for select items.

Not too long ago, Etsy (ETSY -10.70%) seemed like one of the most promising e-commerce stocks on the market. Sales were soaring, up triple digits during the pandemic, as its online flea market saw a surge of interest during the stay-at-home period.

E-commerce just took a step further into artificial intelligence (AI). On Monday, OpenAI announced that U.S. users can now buy from U.S. Etsy (ETSY -10.70%) sellers directly inside ChatGPT, with support for more than one million Shopify (SHOP -0.22%) merchants "coming soon.

Shares of homemade goods-related e-commerce site Etsy (ETSY -10.58%) sank 12.3% on Monday as of 1:44 p.m. ET.

OpenAI is turning ChatGPT into a virtual merchant that can help sell goods for Etsy and Shopify as the artificial intelligence company looks for new revenue in online commerce.

Etsy stock has traded with volatility as Wall Street sizes up a new partnership with ChatGPT creator OpenAI.