# Etsy Gains Momentum for Long-Term Investors

> Etsy's AI-driven growth and buyer engagement signal strong long-term potential for investors.
- Title: Etsy Gains Momentum for Long-Term Investors · The Motley Fool
- Summary: Etsy's AI-driven growth and buyer engagement signal strong long-term potential for investors. Etsy's AI personalization and expanding buyer base drive gross…
- Keywords: etsy, ai personalization, gross merchandise sales, active buyer base, long-term investors, quarterly earnings, finance, money, Gains, Momentum, Long-Term, Investors
- Source: The Motley Fool — https://fool.com/earnings/takeaways/2026/10/28/etsy-3-key-takeaways-for-long-term-investors
- Author: The Motley Fool Team
- Published: 2026-10-28T16:26:01+00:00
- Read time: 1 min
- Topics: etsy, ai personalization, gross merchandise sales, active buyer base, long-term investors, quarterly earnings, finance, money
## Active Buyer Base Returns to Growth
Active buyers returned to year-over-year growth after two years, increasing 1% to 88 million users.

> Active buyers returned to year-over-year growth for the first time in two years, increasing 1% to approximately 88 million on a trailing 12-month basis.
## AI Boosts Gross Merchandise Sales
AI personalization directly increased gross merchandise sales by 2 percentage points annually.

> For example, by the third quarter, we estimate that personalization improvements alone contributed approximately 2 percentage points to our annualized year-over-year GMS growth rate.
## Marketing Efficiency Gains
Marketing spending grew faster than revenue, improving ROI for younger demographics.

> In the third quarter, we increased our marketing spending on a year-over-year basis, but the GMS from marketing grew faster than that. Our ROIs improved year over year on our marketing spending in the third quarter.
## Key takeaway

Etsy's AI personalization and expanding buyer base drive gross merchandise sales growth for long-term investors.