Although ETSY stock may be down sharply following the underlying company’s partnership with OpenAI’s ChatGPT, there may be more to this story than just the headlines.

Also acting as a headwind, The Conference Board released the September consumer sentiment reading today, which showed a 94.2 reading, down 3.6 points from last month and below the expected 96.0. Etsy's holiday quarter demand could struggle if consumers feel less confident about their financial future.

The AI startup's biggest expense was research and development, which incurred $6.7 billion in costs during the first half of 2025.

OpenAI on Monday announced a new product called Instant Checkout, which allows ChatGPT users to purchase items from U.S. Etsy sellers without leaving the hit chatbot's interface. Etsy is the first partner, with OpenAI planning to soon integrate Shopify sellers as well.

What To Know: OpenAI announced it’s rolling out Instant Checkout, powered by the Agentic Commerce Protocol, enabling U.S. ChatGPT users to purchase directly from U.S. Etsy sellers without leaving the chat. Over a million Shopify merchants — including Glossier, SKIMS, Spanx and Vuori — are slated to be added “soon.”