Latest news with #SSTK
Yahoo
04-07-2025
- Business
- Yahoo
3 Reasons to Avoid SSTK and 1 Stock to Buy Instead
What a brutal six months it's been for Shutterstock. The stock has dropped 33.5% and now trades at $19.97, rattling many shareholders. This might have investors contemplating their next move. Is there a buying opportunity in Shutterstock, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team's opinion, it's free. Even though the stock has become cheaper, we're sitting this one out for now. Here are three reasons why SSTK doesn't excite us and a stock we'd rather own. Average revenue per request (ARPR) is a critical metric to track because it measures how much the company earns in transaction fees from each request. ARPR also gives us unique insights into a user's average order size and Shutterstock's take rate, or "cut", on each order. Shutterstock's ARPR growth has been mediocre over the last two years, averaging 3.4%. This isn't great, but the increase in paid downloads is more relevant for assessing long-term business potential. We'll monitor the situation closely; if Shutterstock tries boosting ARPR by taking a more aggressive approach to monetization, it's unclear whether requests can continue growing at the current pace. Analyzing the change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. Shutterstock's EPS grew at a weak 4.7% compounded annual growth rate over the last three years, lower than its 6.9% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. As you can see below, Shutterstock's margin dropped by 21.2 percentage points over the last few years. Almost any movement in the wrong direction is undesirable because of its already low cash conversion. If the trend continues, it could signal it's becoming a more capital-intensive business. Shutterstock's free cash flow margin for the trailing 12 months was breakeven. Shutterstock isn't a terrible business, but it doesn't pass our bar. After the recent drawdown, the stock trades at 3.4× forward EV/EBITDA (or $19.97 per share). This valuation is reasonable, but the company's shakier fundamentals present too much downside risk. We're pretty confident there are superior stocks to buy right now. We'd suggest looking at a dominant Aerospace business that has perfected its M&A strategy. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
26-06-2025
- Business
- Yahoo
1 Stock Under $50 Worth Your Attention and 2 to Question
Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges. However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market. These dynamics can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here is one stock under $50 with huge potential and two that may have trouble. Share Price: $18.79 Originally featuring a library that included many of founder Jon Oringer's photos, Shutterstock (NYSE:SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content. Why Do We Think Twice About SSTK? Platform monetization efforts took a back seat over the last two years as it focused on growing its requests Earnings growth over the last three years fell short of the peer group average as its EPS only increased by 4.7% annually Free cash flow margin shrank by 21.2 percentage points over the last few years, suggesting the company is consuming more capital to stay competitive At $18.79 per share, Shutterstock trades at 3.2x forward EV/EBITDA. Read our free research report to see why you should think twice about including SSTK in your portfolio, it's free. Share Price: $24.53 Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE:HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide. Why Should You Dump HPQ? Sales tumbled by 1% annually over the last five years, showing market trends are working against its favor during this cycle Sales were less profitable over the last two years as its earnings per share fell by 3.4% annually, worse than its revenue declines Free cash flow margin dropped by 4.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up HP's stock price of $24.53 implies a valuation ratio of 6.8x forward P/E. Dive into our free research report to see why there are better opportunities than HPQ. Share Price: $38.65 One of the few public companies where famed investor Marc Andreessen is a Board member, Samsara (NYSE:IOT) provides software and hardware to track industrial equipment, assets, and fleets. Why Will IOT Beat the Market? Customers view its software as mission-critical to their operations as its ARR has averaged 33.3% growth over the last year Expected revenue growth of 22.1% for the next year suggests its market share will rise Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage Samsara is trading at $38.65 per share, or 13.5x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Washington Post
02-05-2025
- Business
- Washington Post
Shutterstock: Q1 Earnings Snapshot
NEW YORK — NEW YORK — Shutterstock Inc. (SSTK) on Friday reported profit of $18.7 million in its first quarter. The New York-based company said it had net income of 53 cents per share. Earnings, adjusted for one-time gains and costs, came to $1.03 per share. The online marketplace for royalty-free images and videos posted revenue of $242.6 million in the period.
Yahoo
02-05-2025
- Business
- Yahoo
Shutterstock: Q1 Earnings Snapshot
NEW YORK (AP) — NEW YORK (AP) — Shutterstock Inc. (SSTK) on Friday reported profit of $18.7 million in its first quarter. The New York-based company said it had net income of 53 cents per share. Earnings, adjusted for one-time gains and costs, came to $1.03 per share. The online marketplace for royalty-free images and videos posted revenue of $242.6 million in the period. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on SSTK at Sign in to access your portfolio
Washington Post
25-02-2025
- Business
- Washington Post
Shutterstock: Q4 Earnings Snapshot
NEW YORK — NEW YORK — Shutterstock Inc. (SSTK) on Tuesday reported a loss of $1.4 million in its fourth quarter. The New York-based company said it had a loss of 4 cents per share. Earnings, adjusted for one-time gains and costs, came to 67 cents per share. The online marketplace for royalty-free images and videos posted revenue of $250.3 million in the period.
