• Etsy (NYSE:ETSY) is partnering with Stripe and Microsoft to enable Copilot Checkout.
• The move brings Etsy listings into Microsoft's Copilot environment alongside other large retailers.
• The partnership connects Etsy more directly with AI commerce platforms such as Microsoft Copilot and Google Gemini.

Etsy, the online marketplace focused on unique and handmade goods, is stepping into AI assisted shopping by plugging into Stripe and Microsoft's Copilot Checkout. For you as an investor, this puts Etsy in the growing group of retailers experimenting with AI agents that can surface products, compare options, and complete purchases without the shopper ever visiting the traditional site or app.

This shift raises questions about who controls the customer relationship when AI agents sit between the buyer and the brand. As more commerce flows through tools like Copilot and Gemini, key issues for Etsy and its peers include data access, visibility into shopper behavior, and how much influence individual marketplaces keep over merchandising and pricing in an AI first shopping environment.

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Quick Assessment

• ✅ Price vs Analyst Target: At US$60.09, Etsy trades about 10% below the US$67 analyst price target.
• ✅ Simply Wall St Valuation: Simply Wall St currently flags Etsy as undervalued, trading 46.6% below its estimated fair value.
• ✅ Recent Momentum: The stock has gained about 7.8% over the last 30 days.

Check out Simply Wall St's in depth valuation analysis for Etsy.

Key Considerations

• 📊 The Copilot Checkout tie up places Etsy inventory inside AI shopping agents, which could change how often buyers interact directly with Etsy's own marketplace.
• 📊 Monitor how Etsy reports buyer growth and take rate over time, as well as any commentary on order volumes coming from partners like Microsoft Copilot and Google Gemini.
• ⚠️ The company carries high debt and has negative shareholders' equity, so investors may want to see how new AI driven channels affect cash generation and balance sheet strength.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Etsy analysis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.