SSTK - Shutterstock: Stock Is Stuck Amidst The AI Debate

2024-04-05 17:52:57 ET

Summary

• Shutterstock, Inc. shares have been stuck and come down as investors fear the impact of AI on its business model.
• The company's revenues and operating profits have been growing, but earnings multiples remain high on small margins, with near-term growth having stalled.
• The rise of artificial intelligence is a concern for investors, leading to cautiousness and limited growth prospects for the company.

Over the summer of last year, I believed that shares of Shutterstock, Inc. (SSTK) were seeing interesting artificial intelligence, or AI, times. Investors were clearly concerned on the potential impact of the rise of artificial intelligence on its business model, causing shares to be pressured, after the company actually posted strong first quarter results and announced an interesting deal for GIPHY. ...

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