Platform Stocks Drop 6% Despite AI Optimism: Why Are Investors Leaving?

On the New York Stock Exchange, shares of Etsy Inc. (ETSY) plunged 6.33% to close at $74.62. The company’s market capitalization fell to roughly $7.08 billion (about KRW 9.6 trillion), wiping out approximately $420 million (KRW 570 billion) in a single day. Trading volume reached around 1.592 million shares.

In May, Etsy launched a dedicated app within ChatGPT, bolstering its AI-driven product recommendation and search capabilities as it accelerates investments in artificial intelligence. In the first quarter of 2026, the company reported revenue of about $630 million and saw gross merchandise volume grow by around 6%, beating market expectations and fueling hopes for a return to profitability.

Etsy is a U.S. e-commerce marketplace for handmade goods, vintage items, and craft supplies, operating a two-sided platform that connects small sellers with consumers worldwide. Since January 2026, under CEO Kruti Patel Goyal, key priorities have included addressing slowing growth, improving profitability, and enhancing the company’s brand image.