What Happened?
Shares of stock photography and footage provider Shutterstock (NYSE:SSTK) jumped 13.3% in the afternoon session after the company reported a "beat and raise" quarter. Third-quarter results blew past analysts' revenue, EPS, and EBITDA expectations.
Looking ahead, full-year revenue and EPS guidance were both raised, which is always encouraging. Notably, the company completed the acquisition of Envato, which provides the opportunity to onboard more subscribers and accelerate topline growth; overall, this quarter was solid.
Is now the time to buy Shutterstock? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Shutterstock’s shares are quite volatile and have had 17 moves greater than 5% over the last year. But moves this big are rare even for Shutterstock and indicate this news significantly impacted the market’s perception of the business.
Shutterstock is down 30.2% since the beginning of the year, and at $33.20 per share, it is trading 35.9% below its 52-week high of $51.79 from March 2024. Investors who bought $1,000 worth of Shutterstock’s shares 5 years ago would now be looking at an investment worth $855.07.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.