Why Shutterstock Is Poised to Plunge

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online imagery marketplace operator Shutterstock has received an alarming one-star ranking.

With that in mind, let's take a closer look at Shutterstock and see what CAPS investors are saying about the stock right now.

Shutterstock facts

Headquarters (founded)

New York (2003)

Market Cap

$1.3 billion

Industry

Publishing

Trailing-12-Month Revenue

$169.6 million

Management

Founder/Chairman/CEO Jonathan Oringer

President/COO Thilo Semmelbauer

Trailing-12-Month Return on Capital

62.7%

Cash/Debt

$102.1 million / $6.0 million

Competitors

Facebook

Google


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 33% of the 12 members who have rated Shutterstock believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, OklaBoston, succinctly summed up the Shutterstock bear case for our community:

High insider ownership indicates this recent IPO has a good chance of staying above book value, but even allowing for that I wouldn't pay more than $7 for it. Current [price-to-book value] is an absurd 18. Can't green thumb that even with the insider support.

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The article Why Shutterstock Is Poised to Plunge originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Facebook and Google. The Motley Fool owns shares of Facebook and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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