Looking back on online marketplace stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Etsy (NYSE: ETSY) and its peers.
Marketplaces have existed for centuries. Where once it was a main street in a small town or a mall in the suburbs, sellers benefitted from proximity to one another because they could draw customers by offering convenience and selection. Today, a myriad of online marketplaces fulfill that same role, aggregating large customer bases, which attracts commission-paying sellers, generating flywheel scale effects that feed back into further customer acquisition.
The 11 online marketplace stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 1.8% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.2% since the latest earnings results.
Best Q2: Etsy (NYSE: ETSY)
Founded by a struggling amateur furniture maker Robert Kalin and his two friends, Etsy (NYSE: ETSY) is one of the world’s largest online marketplaces, focusing on handmade or vintage items.
Etsy reported revenues of $668.3 million, up 6.2% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA estimates.
Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 19.1% since reporting and currently trades at $69.43.
Is now the time to buy Etsy? Access our full analysis of the earnings results here, it’s free.
MercadoLibre (NASDAQ: MELI)
Originally started as an online auction platform, MercadoLibre (NASDAQ: MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
MercadoLibre reported revenues of $10.17 billion, up 49.8% year on year, outperforming analysts’ expectations by 4.5%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and impressive growth in its users.
MercadoLibre delivered the fastest revenue growth among its peers. The company reported 89 million daily active users, up 25.4% year on year. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8.7% since reporting. It currently trades at $1,755.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: LegalZoom (NASDAQ: LZ)
Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ: LZ) offers online legal services and documentation assistance for individuals and businesses.
LegalZoom reported revenues of $205.3 million, up 6.6% year on year, in line with analysts’ expectations. It was a softer quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and EBITDA guidance for next quarter missing analysts’ expectations significantly.
As expected, the stock is down 30.2% since the results and currently trades at $5.66.
Read our full analysis of LegalZoom’s results here.
Cars.com (NYSE: CARS)
Originally started as a joint venture between several media companies including The Washington Post and The New York Times, Cars.com (NYSE: CARS) is a digital marketplace that connects new and used car buyers and sellers.
Cars.com reported revenues of $179.9 million, flat year on year. This result was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also produced a decent beat of analysts’ EBITDA estimates but disappointing growth in its buyers.
The company reported 19,343 active buyers, down 0.4% year on year. The stock is down 7.9% since reporting and currently trades at $10.91.
Read our full, actionable report on Cars.com here, it’s free.
Sea (NYSE: SE)
Founded in 2009 and a publicly traded company since 2017, Sea (NYSE: SE) started as a gaming platform and has since expanded to offer a variety of services such as e-commerce, digital payments, and financial services across Southeast Asia.
Sea reported revenues of $7.74 billion, up 44.3% year on year. This number beat analysts’ expectations by 7.3%. Overall, it was an exceptional quarter as it also produced a solid beat of analysts’ EBITDA estimates and solid growth in its users.
Sea scored the biggest analyst estimate beat in the group. The company reported 68.1 million users, up 10.2% year on year. The stock is down 24.3% since reporting and currently trades at $99.59.
Read our full, actionable report on Sea here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
