Shares of Etsy (ETSY) tumbled 7.60% in pre-market trading on Wednesday following the announcement of a major leadership change at the online marketplace. The company revealed that CEO Josh Silverman will step down on December 31, 2025, to be replaced by insider Kruti Patel Goyal effective January 1, 2026.

The sudden leadership transition appears to have caught investors off guard, overshadowing Etsy's upcoming third-quarter earnings report scheduled for later in the day. Silverman has led Etsy for eight years, steering the company through significant growth and challenges in the e-commerce landscape.

While some analysts view the appointment of an internal candidate as a sign of continuity, the market's initial reaction suggests concerns about the change in leadership. Investors will likely be looking for more details on the transition and its potential impact on Etsy's strategy during the company's earnings call, where management is expected to discuss Q3 results and provide future guidance.