Etsy's recent performance constitutes a strong rebound from the significant decline that started as soon as the company went public on April 16.

The Etsy stock price plummeted 45.7% during its first two months as a public company. It has been considered the worst-performing IPO of 2015 and proved itself worthy of the title thanks to two straight quarters of losses.

In Q1, Etsy posted revenue of $59 million, up 44.4% from $40.5 million in Q1 2014. However, the company still lost $0.84 per share. Total operating expenses skyrocketed 73% to $42.7 million over the same period.

The firm's financial troubles continued into the second quarter. Etsy reported a loss of $6.4 million in Q2, or $0.07 per share. Total operating expenses were $43.2 million in the second quarter, up 49.3% year over year. The costs came from marketing, increased hiring, and product development expenses.

With ETSY stock on the rebound, investors are wondering if they should buy ETSY now…

With the ETSY Stock Price Up 5%, Is ETSY Stock a Buy?

The biggest risk with buying Etsy stock is the company's lack of profitability.

The company's operating expenses have skyrocketed in the last couple years and are projected to keep growing. They increased 81.4% in 2013 and 67.6% in 2014. Etsy's expenses of $43.2 million in Q2 alone show that the company isn't cutting back its costs.

The second red flag is Etsy's B Corp. status.

The B Corp. status defines Etsy's mission and culture. The certifications are awarded by B Lab, a nonprofit that, according to its website, "uses the power of business to solve social and environmental problems." B Corp. certifications are awarded to companies that meet various social, environmental, transparency, and accountability standards.

But these values threaten Etsy's profitability. Company management prioritizes shareholder and community well-being over Etsy stock's success.

Etsy wants investors to embrace its mission to be both socially conscious and financially successful.

The Bottom Line: The Etsy stock price has skyrocketed over the last few sessions. But today's gains represent an atypical performance. With two poor earnings reports and no profits in sight, it's clear Etsy will suffer over the long term. We advise against buying Etsy stock.

How to Safely Profit from Any IPO: Investing in newly issued stocks can seem like an exciting way to earn huge profits. But with institutional investors and other Wall Street "VIPs" cheating the market for quick gains, the IPO process is a rigged game nowadays. That's why we've outlined the three best IPO investing rules to follow for any new stock. Check them out here…