It's hard to make a living as a photo-sharing site with photofinishing services if your name isn't Shutterfly
This may not seem like a big hit for American Greetings, which acquired the photo-sharing site in an affordable $26.5 million deal a little more than three years ago. But why is American Greetings nudging users toward Shutterfly when it still owns Webshots, which it acquired from CNET Networks a few years ago? Is the implication here that Webshots, too, may soon be heading off to the great big darkroom in the sky?
It's hard to survive as a stand-alone photo-sharing website these days. Folks are increasingly sharing snapshots through Facebook. The companies still running popular sites often have grander hardware objectives. Eastman Kodak's
Those who enter this space without a monetization endgame aren't here for long. News Corp.
Shuttefly's thriving as a free photo-sharing site that specializes in printing customized products such as photobooks, calendars, and mugs. In its stellar holiday quarter, revenue and net income soared 27% and 35%, respectively.
American Greetings' failure is now Shutterfly's advantage. Then again, the ugliest sectors sometimes have the prettiest opportunities.
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Longtime Fool contributor Rick Munarriz has never tried to shake it like a Polaroid picture. He does not own shares in any of the companies mentioned in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.