Why Shutterstock Is Poised to Plunge
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.
New York (2003)
Founder/Chairman/CEO Jonathan Oringer
President/COO Thilo Semmelbauer
Trailing-12-Month Return on Capital
$102.1 million / $6.0 million
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.
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.