Author Topic: Shutterstock Stock Price Down 13.3% On Fotolia Announcement (Read 6625 times)

Pickerell · « **on:** December 12, 2014, 13:09 »

Shutterstock's stock price has dropped 13.3% to $62.85, almost a new 52 week low after the Adobe-Fotolia announcement. Do any image creators think Shutterstock is in that much danger, or is this just another example of the Stock Market being totally out of touch with the market for stock photography?

ppdd · « **Reply #1 on:** December 12, 2014, 13:18 »

Seems like this may reflect the market's feeling the Adobe could fix and strengthen Fotolia as part of a larger publicly traded company; this makes it a potential threat, so the market could adjust. I don't think much will come of it short term, but it gives a primary competitor more money/power - Fotolia will no doubt be bigger/stronger for this deal. I seems like an overcorrection, but SS has been somewhat unchallenged by well funded competition. iStock is a mess and others are budget constrained. Adobe can make Fotolia whatever it wants and it may be unavoidable, long term.

Jo Ann Snover · « **Reply #2 on:** December 12, 2014, 15:30 »

The Dow has dropped a lot today, and I doubt that was all SS panic

http://www.usatoday.com/story/money/markets/2014/12/12/stocks-friday/20295995/

World markets have been having a bad day too

http://www.theguardian.com/business/2014/dec/12/world-stock-markets-tumble-and-ftse-suffers-worst-fall-since-2011

I also don't think there's much Shutterstock has to worry about from Fotolia, with or without Adobe. The promoters and marketers talk up mergers, but the track record for longer term success is not great (in general) and I honestly can't see how Adobe owning a stock agency opens up any market that isn't already being addressed by one or more of the agencies. It's a nice theory, but I really doubt it's going to change buyer behavior in any big way.

Nikovsk · « **Reply #3 on:** December 12, 2014, 16:54 »

Shutterstock is doing very well as a company. Just stay away from it's shares.

The financial bubble will explode in 2015 and we might even see fewer sales across the board.

Apple for example is worth 40% more than the whole russian stock market - it's laughable.

Red Dove · « **Reply #4 on:** December 12, 2014, 18:40 »

The vast majority of investors are like Gazelles at a waterhole - the slightest whiff of anything on the wind and they pee themselves and scatter. Look at the long money not the pee and run crowd.

a and n · « **Reply #5 on:** December 12, 2014, 18:54 »

Nothing wrong with SS. Was an excellent time to buy today...so I bought.

michaeldb · « **Reply #6 on:** December 12, 2014, 21:13 »

The stock market fell in love with Adobe when the cloud subscription model was introduced and the love affair grows; Adobe beat earnings expectations and got a big bump in stock price last week. Now that Adobe and SS are competitors, expect the stock market to love Adobe at the expense of SS stock price.

Hobostocker · « **Reply #7 on:** December 12, 2014, 22:42 »

Quote from: Pickerell on December 12, 2014, 13:09

Shutterstock's stock price has dropped 13.3% to $62.85, almost a new 52 week low after the Adobe-Fotolia announcement. Do any image creators think Shutterstock is in that much danger, or is this just another example of the Stock Market being totally out of touch with the market for stock photography?

a 13% drop is normal fluctuation caused by day-traders and scalpers whenever a competitor announces something big.

if SS was seriously F'ed up it would go down 20-30% and the loss will be consistent over time, besides SS is already overpriced so there's nothing strange if it goes back to a realistic market value.

Hobostocker · « **Reply #8 on:** December 12, 2014, 22:44 »

Quote from: michaeldb on December 12, 2014, 21:13

The stock market fell in love with Adobe when the cloud subscription model was introduced and the love affair grows; Adobe beat earnings expectations and got a big bump in stock price last week. Now that Adobe and SS are competitors, expect the stock market to love Adobe at the expense of SS stock price.

they're both SOLID companies making solid profits, the market could say otherwise from time to time but it means nothing in the long term, as long as they keep doing their job they've nothing to fear from the vultures in Wall Street.

Hobostocker · « **Reply #9 on:** December 12, 2014, 22:50 »

Quote from: Nikovsk on December 12, 2014, 16:54

Shutterstock is doing very well as a company. Just stay away from it's shares.

The financial bubble will explode in 2015 and we might even see fewer sales across the board.

Apple for example is worth 40% more than the whole russian stock market - it's laughable.

and so is Google and many others.

but ultimately all these companies are able to make solid profits year on year, 20 yrs from now you can bet Adobe is still market leader no matter what if 2-3 financial bubbles will explode soon, Adobe in particular is among the top-3 software house in the world in my opinion, they'll be the very last ones to suffer from the next boom/bust economic cycle.

SS is more vulnerable but still market leader in microstock.

Adobe's buyout of Fotolia is just a promise that they'll do their best to keep Fotolia on track but as much as we know it could turn into a total fiasco so from any point of view SS is in a more stable and safe position at least until Fotolia will enter the CC service and we'll be able to get a rough idea of its performance and its contribution to the CC market and Adobe's profits.

Uncle Pete · « **Reply #10 on:** December 13, 2014, 00:07 »

That covered it just fine. Investment isn't a one day event and just as some people will run scared, others will see it as a chance to buy. The only part that matters is how many of each.

Many people have pointed out that in their opinion SS is over valued. Adjustment is bound to occur some day. Maybe this is it, maybe not yet. Maybe never.

But one day is just a drop in the bucket. Watch the ripples and see how it settles. It's going to be months before we see any change at FT or by Adobe.

Quote from: Red Dove on December 12, 2014, 18:40

The vast majority of investors are like Gazelles at a waterhole - the slightest whiff of anything on the wind and they pee themselves and scatter. Look at the long money not the pee and run crowd.