Etsy raises fees and revenue outlook, shares soar

FILE - This Jan. 6, 2015 file photo shows an Etsy mobile credit card reader, in New York. Etsy’s stock soared in early trading on Thursday, June 14, 2018, as the online crafts marketplace announced that it’s increasing its transaction fee and boosted its full-year revenue outlook. (AP Photo/Mark Lennihan, File)

BROOKLYN, N.Y. (AP) -- Etsy's stock soared on Thursday after the online crafts company announced an increase in fees and boosted its revenue outlook for the year.

The Brooklyn company that the transaction fee charged when a person or business makes a sale will rise from 3.5 percent, to 5 percent. It will also apply to the shipping cost. The fee will be increased starting on July 16.

Etsy Inc. has 2 million active sellers and nearly 35 million active buyers.

The company now sees 2018 revenue growth of between 32 percent and 34 percent. Its prior forecast was for 22 percent to 24 percent growth.

Shares jumped $8.66, or more than 26 percent, to close at $41.65. The stock has doubled in the year to date.