Motley Fool Money Consumer Stocks Spotlight: Etsy, Roblox, and Reddit
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Aug 4, 2025 The podcast dives into the mixed economic signals impacting consumer-centric businesses. It contrasts Etsy's stable revenue against Roblox's dependence on viral trends. Reddit's remarkable revenue growth and its potential challenges in maintaining user engagement are dissected, particularly in the context of AI. A historical look at grocery retail evolution highlights the shift toward the self-service model, while discussions on the competitive landscape reveal the strain on profit margins and the future of automation in grocery shopping.
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Etsy's Growth Masked by Flat Sales
- Etsy's 4% revenue growth hides a 5% drop in gross merchandise sales.
- Sellers spent more on advertising, but sales remain flat, questioning sustainability of Etsy's price hikes.
Roblox's Viral Growth Drives Engagement
- Roblox's viral new games fuel 58% engagement growth and 50% booking growth.
- Growth depends on keeping users engaged beyond initial viral hits, showing platform strength.
Reddit's Growth and AI Challenge
- Reddit's revenue grew 78% and it produces free cash flow despite stock-based compensation.
- Its value relies on unique human experience data, but AI's role poses long-term risks and opportunities.