1/ $ETSY has become one of the largest platforms in the world for counterfeit goods, and it is indisputable. They risk running afoul with the DOJ, FTC, and Customs Border Protection.
2/ The company can no longer posture that these goods are a small % of revenue as the scale has become too large and abusive.
The worst part is they have allowed the culprits to buy "ad words" of the brands and then labeled many of these counterfeiters as trusted websites.
3/ No brand is immune from the abuse $DIS $NKE LVMH Rolex, and the scale has gone to millions of listings.
Not every fraud is a 300-page forensic work; sometimes, the crime is right in front of our eyes. Management will have a lot of explaining to do on the earnings call.
1/ How much fun is Chat GPT? $ETSY fraud is Shakespearean.
Hark! Doth mine ears deceive me? Forsooth, 'tis a tale most foul! Etsy, that once-beloved purveyor of goods crafted by hand, hath fallen from grace and been revealed as a nefarious den of iniquity.
2/ Citron, that noble seeker of truth, hath uncovered the unsavory secrets of this wretched hive of scum and villainy, where counterfeit goods doth run rampant and the light of honesty is but a flicker in the darkness.
3/ Indeed, management hath turned a blind eye to the filth that festers within, and by their negligence, have allowed Etsy to become the largest organized clearing house for counterfeit goods in all the world. Oh, the horror!
1/ We were reluctant to mention $WISH until we saw the Super Bowl. The $Wish business model seemed terminal....and then everything changed!!! It has now become the most assymetrical opportunity in the market
2/ Temu just had 2 Super Bowl ads and has recently been the #1 download app on the Apple platform. The world has been reintroduced to the surprise discovery e-commerce model and it is being acceptted. $PDD has done their homework which now finnally puts $WISH in play.
3/ $WISH is the exact same business at Temu yet trades at a NEGATIVE $450 mil enterprise market cap. With $832M in cash as of Q3, no debt,, and an untapped $280M credit line, $WISH likely has multiple years of liquidity available.
Citron would like to share a few thoughts on 25 years of shortselling and how it relates to the FTX Fiasco. Maybe it is time to finally listening to skeptics instead of vilifying them.
The US Government should be embarrassed that they let one person get so close to the inner sanctum of government and influence without even checking a tax return. Forget about private equity, they are caveat emptor,
What about the FBI not running a cursery 2 hour check on the 2nd largest donor to the Democratic Party. This is a matter of national security...if you didn't try to silence us, we could have told you in 2 hours.