Etsy’s market value is evaporating after reporting more losses

Wave goodbye to market value.
Wave goodbye to market value.
Image: Reuters/Mike Segar
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This post has been updated.

Etsy is coming apart at the seams.

Shares of the online seller of handcrafted goods dropped by 13% in after-hours trading (following a 6% loss during the day) on Tuesday after the company reported a $6.4 million second-quarter loss.

Etsy also warned that it didn’t expect to make a profit anytime soon: The strong dollar is dampening demand from buyers outside the US and Etsy plans to increase spending on marketing and hiring.

The company, whose shares are down 36% since going public in April, took a bath last quarter after investors expressed concerns over an influx of counterfeit goods and realized the hyped-up company wasn’t profitable. (The decline jumps to 45% including today’s after-hours trading.)

And those losses seem to be deepening.

No matter, says Etsy. The company said it is establishing the “foundation for the long-term value we expect to create for our entire community, including our investors, for decades to come.” It points out that the number of active buyers and sellers on its marketplace grew by more than 24%, while revenue rose by 44.4% from the year before to $61 million.

Update: An Etsy spokeswoman told Quartz the company first disclosed its financials when it filed to go public in March. In regards to worries of counterfeit goods, she noted the company’s 2014 Transparency report, which said the company took down or disabled access to 176,137 listings—or 0.5% of its total listings—over intellectual property concerns.