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An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.

Victor J. Blue/Bloomberg via Getty Images

Etsy missed on revenue and gross merchandise sales for the fourth quarter, with the company citing “significant headwinds,” including a pullback in consumer spending. The stock slid more than 10% in morning trading Wednesday.

Here’s how the company did:

  • Earnings: $1.03 per share adjusted vs. 93 cents per share expected by LSEG
  • Revenue: $852.2 million vs. $862.8 million expected by LSEG

Gross merchandise sales, or the total volume of goods sold on the platform, came in at $3.74 billion, a decline of 6.8% year over year. Wall Street had forecast fourth-quarter GMS of $3.8 billion, according to analysts surveyed by FactSet.

The fourth quarter includes the holiday shopping period. Etsy said the GMS slump was a result of “pressure on consumer discretionary product spending,” tough comparisons due to the shortened holiday shopping season and “category mix,” as well as a competitive retail and marketing environment.

Etsy operates an online marketplace that connects buyers and sellers with mostly artisan and handcrafted goods. The company has been working to strengthen its image as a destination for unique gifts and products as it combats a fiercely competitive e-commerce market dominated by Amazon and, more recently, Chinese online retailers Temu, Shein and TikTok Shop.

Online holiday spending in November and December rose nearly 9% to $241.1 billion, topping analysts’ expectations of $240.8 billion, according to Adobe Analytics. Inflation-weary shoppers opened their wallets in search of deep discounts, but some discretionary categories like furniture, jewelry and accessories were expected to see some softness compared with toys and home decor products.

Revenue in the fourth quarter increased 1.2% to $852.2 million, compared to $842.3 million a year ago.

Net income for the fourth quarter came in at $129.9 million, or $1.17 per share, from $83.2 million, or 70 cents per share, a year ago.

Etsy also gave a downbeat outlook for the current quarter, saying it expects GMS will fall at a rate similar to the year-over-year performance it reported in the fourth quarter.

Etsy CEO Josh Silverman said on a call with investors that the company is taking a short-term hit to its GMS as it works to overhaul the site. The company has been focused less on “near-term conversion driving” in favor of improving the quality of goods and shopping experience on its site, Silverman said.

“While this resulted in real opportunity cost to GMS to the tune of at least a few hundred million dollars last year, we believe it will be well worth it as we’re now building on this improved foundation for 2025 and beyond,” Silverman told investors.

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In recent years, Etsy has been working to counter the spread of mass-produced, generic goods from resellers on its platform to get back to its roots and keep shoppers returning to the platform. It’s also launched a gifting feature to provide personalized recommendations to shoppers, along with a loyalty program.

“So while others focus on cheap and fast, we’re focusing on creativity, self-expression, and elevating artisanal items,” Silverman said. “And while others rely on mass production and complex supply chains, we are empowering our nimble and unique seller base to thrive.”

The e-commerce industry is still absorbing the impact of President Donald Trump‘s recent tariff announcements, which target a popular tax loophole used by some online retailers. Trump suspended, then reinstated, the de minimis exemption, which allows exporters to ship packages worth less than $800 into the U.S. duty-free.

The loophole is expected to be shut again once the Commerce Department and customs officials put systems in place to process and collect tariffs on the millions of de minimis packages that flow into the U.S. daily. A significant portion of those packages originate from China.

Silverman said he expects Etsy to benefit from the tariffs and de minimis restrictions, unless the Trump administration targets European countries, in which case that “could create more friction on our buyers.”

“Etsy has much less dependence on products coming in from China, vastly less dependence,” Silverman said. “So I think to the extent that we see tariffs that are very focused on China … I think at least in the near term, Etsy is a net beneficiary.”

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Amazon bringing faster delivery to thousands of small towns and cities

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Amazon bringing faster delivery to thousands of small towns and cities

A worker unloads boxes from an Amazon delivery van in San Francisco on Oct. 24, 2024.

David Paul Morris | Bloomberg | Getty Images

Amazon is expanding its rapid delivery machine to more rural corners of the U.S.

The company said Tuesday it plans to bring same- or next-day delivery to more than 4,000 smaller cities, towns and rural communities across the country “for the first time” by the end of this year.

The move is part of a previously announced small-town expansion that will see Amazon spend roughly $4 billion by the end of 2026 to triple the size of its rural delivery network.

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Amazon has made speedy delivery a cornerstone of its juggernaut e-commerce business as it faces heightened competition from brick-and-mortar stalwarts like Walmart, and newer entrants including Temu, Shein and TikTok Shop, which have hooked shoppers with their ultra-discounted wares.

“This expansion goes beyond speed — it’s about transforming daily life for rural customers, who typically live farther from brick-and-mortar retailers, have fewer product and brand choices, and face limited delivery options when shopping online,” Amazon said in a release.

The announcement comes as Amazon prepares to kick off its longest-ever Prime Day. The 96-hour event will run four days this year starting at 12:01 a.m. PT on July 8, and continuing through July 11.

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Meta is absent from SF Pride this year, as tech industry retreats from public support of LGBTQ+

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Meta is absent from SF Pride this year, as tech industry retreats from public support of LGBTQ+

Parade goers hold Pride flags during the annual Pride Parade in San Francisco on Sunday, June 29, 2024.

Minh Connors | San Francisco Chronicle | Hearst Newspapers | Getty Images

Meta CEO Mark Zuckerberg is staying mum these days when it comes to the LGBTQ+ community. It wasn’t always that way. 

San Francisco Pride Executive Director Suzanne Ford told CNBC she remembers when Zuckerberg personally called the nonprofit to ensure that the company then known as Facebook had a spot at the annual event. As the world’s largest LGBTQ+ parade, the SF Pride event has become a symbol representing advocacy and social justice for members of the community.

In 2015, SF Pride was prohibiting Facebook from marching at the event because of the company’s policies that required people to use their legal names on the social network, Ford said. Members of the LGBTQ+ community were worried that bad actors were exploiting the company’s account policy by reporting transgender Facebook users and others who no longer identify by their legal names.

After Facebook updated the policy, Zuckerberg called SF Pride’s then-executive director George Ridgely to ask him that Facebook be included in the parade, Ford said. 

The relationship between SF Pride and Meta has since splintered.

SF Pride formally cut ties with Meta in March after the company enacted a number of new policies, including a scaling back of internal programs designed to increase hiring of diverse candidates, which CNBC reported in January.

Meta also eased content-moderation guidelines as part of its policy changes, which multiple current and former employees told CNBC could instigate more online abuse toward marginalized communities, including members of the LGBTQ+ community. Zuckerberg has also made an effort to curry favor with President Donald Trump, who signed an executive order in January calling for investigations into companies that support diversity, equity and inclusion, or DEI,  initiatives.

Since the organization’s decision to end its relationship with Meta, Ford said that she hasn’t heard from Zuckerberg or anybody that SF Pride used to have a relationship with at the company. 

Meta will not be taking part in this year’s SF Pride festival, set to take place this weekend at San Francisco’s Civic Center. The annual parade will be held on Sunday, according to the event’s website. The theme for 2025 is “Queer Joy is Resistance.”

“Why was it so important for Mark back then, and why is it so important for Mark now not to be associated with San Francisco Pride?” Ford said.

Meta declined to comment.

FILE PHOTO: Facebook CEO Mark Zuckerberg marched with 700 Facebook employees In San Francisco’s Gay Pride Parade on June 30, 2013.

Kobby Dagan | VWPics |AP

Meta isn’t the only company distancing itself from SF Pride. Other major companies like Anheuser-Busch, Comcast, Diageo and Nissan are also no longer sponsoring SF Pride after years of support, CNBC previously reported.

Given that SF Pride shares a geographic center with Meta and so much of the tech industry, the lack of support for the LGBTQ+ community after years of public trumpeting cuts especially deep, Ford said. Google-parent Alphabet has also stopped sponsoring SF Pride this year, she said.

San Francisco represents both the “home of innovation” for the tech industry and the “home and the birthplace of the LGBTQ community in the United States,” said Ford, adding that it’s no mistake why so much innovation comes from the region.

“Creative and wonderful people want to come to San Francisco — it’s not the drinking water — but they come here because you can be yourself here,” she said. “You can love who you love, you can be who you are and you don’t have to march to any certain drumbeat.”

Tech companies represent a little over 15% of SF Pride’s overall sponsorship funding for the event. The organization’s budget is down $180,000 from their target because of a drop of overall corporate sponsors, a spokesperson told CNBC on Wednesday.

There are still large tech sponsorships from the likes of Apple, Amazon and Salesforce, but otherwise, there’s a palpable silence from the tech industry this year about supporting LGBTQ+ causes, Ford said. 

For instance, Ford said that in previous years, her time was often spent speaking to tech companies’ employee resource groups in the lead-up to SF Pride, but she has yet to receive any invitation of that kind this year.

Ford said she also hopes that OpenAI CEO Sam Altman, who married his partner Oliver Mulherin in 2024, will be more vocal about supporting the LGBTQ+ community and SF Pride. Ford said she briefly met Altman a few months ago to discuss SF Pride, but she has not heard from him since.

“One would think that OpenAI here in San Francisco, that they would think that they should be supporting the fabric of the community,” said Ford, adding that the lack of support from OpenAI and Altman is “painful because Sam is a member of our community, and he certainly has resources.”

OpenAI declined to comment.

A parade float during the annual Pride Parade in San Francisco on Sunday, June 29, 2024.

Minh Connors | San Francisco Chronicle | Hearst Newspapers | Getty Images

Prominent tech companies like Meta, Amazon and Uber have posted rainbow-coated messages on their websites and social media accounts in years past to show support for Pride Month, which is observed in June, but this year, tech companies’ online presence are noticeably less colorful.

The threat of a lawsuit coupled with the possibility of a public tongue-lashing by Trump, other politicians and social media has caused many tech leaders and corporate executives to stay quiet on LGBTQ+ issues, said Amy Dufrane, CEO of human resource certification organization HRCI.

“Anything that touches the space of DEI, we’re seeing companies pull back from that out of fear,” she said.

Executives who support LGBTQ+ and related DEI issues are doing so under the radar to avoid drawing attention, Dufrane said. For example, a spokesperson for SF Pride said that two tech companies have recently donated to the organization but want to remain anonymous. Ford declined to name the tech companies.

“Sometimes people in our community assume there’s no good, there’s no one at these corporations that cares about us,” Ford said. “Sometimes they do, and they don’t want the consequences of caring about us.”

Ford said that the door is still open for Zuckerberg to contact SF Pride, but ultimately, it would be up to the nonprofit’s board to decide the next steps. Ford said that Zuckerberg would likely have to make a “commitment to some things that I don’t think that he would be willing to do.”

“We have got to leave space for people to change, we got to leave space like if at Meta there’s a leadership change or they come to the realization that this is just bad, the track they’re going down is wrong,” Ford said. “I want to leave space for them to come and have a discussion with us and to show us that they are in line with our values.”

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.

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Uber, Waymo robotaxi service opens to passengers in Atlanta

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Uber, Waymo robotaxi service opens to passengers in Atlanta

Waymo partners with Uber to bring robotaxi service to Atlanta and Austin.

Uber Technologies Inc.

Uber and Alphabet‘s Waymo are now offering robotaxi rides to the public in Atlanta, as the companies continue expansion of their partnership.

The Waymo robotaxis available through the Uber app will cover approximately 65 square miles around Atlanta, but will not yet travel on highways or to the airport. The vehicles feature Waymo’s driverless technology, known as the Waymo Driver, integrated into battery electric Jaguar I-PACE SUVs.

The companies said in September that they would be jointly bringing Waymo One to Austin, Texas, and to Atlanta. Rides became available in Austin in March, launching in the Texas capital before Elon Musk’s Tesla got its robotaxi service off the ground.

Tesla, which is now headquartered in Austin, debuted a pilot robotaxi service there over the weekend for invitees only. Tesla’s robotaxis are Model Y SUVs equipped with the company’s latest driverless technology. The Tesla robotaxis operate in daytime hours only in a geofenced area of Austin, and include a human valet who rides in the front passenger seat to ensure safety.

Waymo robotaxis in Austin, Atlanta and elsewhere operate without any human supervisor on board. They also employ sophisticated lidar and radar sensors that are not used in Tesla’s vehicles today.

Once viewed as a driverless pioneer, Tesla is now fighting to catch up with Waymo, as well as competitors in China including Baidu’s Apollo Go, and WeRide, which also partners with Uber.

In Atlanta and Austin, Waymo rides are only available through Uber’s app, while in San Francisco and Los Angeles, passengers book through the Waymo One app. The Waymo-Uber partnership only covers passenger rides, not Uber Eats deliveries.

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