Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Shutterstock Shares Jumped

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of online digital image seller Shutterstock (NYSE: SSTK  ) jumped as much as 13% today, after the recent IPO reported strong quarterly earnings.

So what: Shutterstock, which provides over 22 million images for various publications and other outlets, said that the number of paid downloads it sold grew by 26%, and revenue per download also ticked up by 7%. Total revenue jumped 36%, to $42.3 million, and net income grew to $0.31 per share compared to $0.20 a year ago. Management also raised its revenue guidance for 2013 to $204 million to $208 million, but did not issue EPS guidance.

Now what: Considering that many IPOs often fade quickly after an initial pop, it's reassuring to see Shutterstock post such strong results in its first report as a publicly-traded company. Based on last quarter's EPS, the company is trading at a P/E less than 20, with considerable long-term growth prospects, as digital images become more valuable and more common, such as in marketing and business communications. Its fast-growing library should also help lock out competition. It's easy to see the stock moving higher in the near future.

Don't miss the next snapshot of Shutterstock.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2117682, ~/Articles/ArticleHandler.aspx, 10/25/2016 4:51:47 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 7 hours ago Sponsored by:
DOW 18,223.03 77.32 0.43%
S&P 500 2,151.33 10.17 0.47%
NASD 5,309.83 52.43 1.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 4:02 PM
SSTK $64.11 Up +0.24 +0.38%
Shutterstock CAPS Rating: ****