What can an accidental endorsement from Google do for a business? Apparently it can cause stocks to skyrocket by more than 30% — at least, that’s what the e-commerce site Etsy experienced on July 17.
According to reports from Reuters and MarketWatch, Etsy shares rose as much as 37% on July 17 after Google named the business as a good example of how Google’s algorithm updates can boost traffic for legitimate websites.
Omid Kordestani, Google’s chief business officer, mentioned Etsy in a company conference call on July 16 while explaining that Google is putting more focus on indexing information in third-party apps so that internet users and consumers can find what they’re looking for.
Etsy’s success, Kordestani said, shows how Google’s updates are intended to help other businesses improve their sales revenue by connecting with valuable consumer audiences. Businesses in the U.S. e-commerce industry already bring in an estimated $1.2 million every 30 seconds in sales revenue, but Google execs are hoping that this number will increase, not just domestically but also globally.
“We … recently started showing such links in search results on iOS,” Kordestani said. “Developers like Etsy are already seeing a boost in traffic as a result of deep linking.”
Getting an e-commerce business like Etsy on Google’s radar — and considered by Google execs to be a successful example of the algorithm updates — is no small feat.
The craft-based website was one of the first major e-commerce sites to focus on selling (and reselling) one-of-a-kind antique and handmade goods; the products range from lovely gifts and antique collectibles to absolutely bizarre and useless items (unless you’ve always wanted a crocheted bacon-and-egg jellyfish, or perhaps Paula Deen’s face handpainted on a wine glass).
According to Business Insider, Google’s mention of Etsy caused its stocks to rise as high as $22.15, which the company hadn’t seen since mid-May.