After 10 years in business Etsy, the New York-based online craft marketplace went public in April of this year - an initial wave of enthusiasm saw the company's share price double from $16 a share, to $32, valuing the company at more than $3bn.

But it has had a short-lived honeymoon period, its shares dropped by 13 percent in after hour trading yesterday, following a 6 percent loss earlier in the day as the company reported poor trading data.

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Etsy has warned investors that the it won't be returning a profit anytime soon - it has never returned a profit since it was dreamt up by founder, Rob Kalin in 2005 when he was looking for a place to sell his own wooden computers.

Since then it has grown a massive following, allowing small craft businesses to sell their goods internationally without having any presence in traditional brick and mortar stores.

The company currently has 1.5 million active sellers and 21.7 million active buyers.

Shares in the company have lost 36 percent of their overall value since the company went public - and the value was down by as much as 45 percent at one point overnight.

Etsy's surface issue is spiralling losses - which amounted to $6.4m (€5.9), although revenues did increase by 44 percent year-on-year to $61.4m.

The bigger issue is a loss in faith - as investors have been left wondering if the much-hyped company will ever make a profit.

This is a common problem for the current generation of inflated tech stocks - and could serve as a cautionary tale to investors when the next-big-thing comes on the market.