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 (NYSE: SSTK  ) 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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