Why Is Shutterstock (SSTK) Stock Rocketing Higher Today

Kayode Omotosho /
2023/04/25 12:33 pm EDT

What Happened:

Shares of stock photography and footage provider Shutterstock (NYSE:SSTK) jumped 6.97% in the morning session after the company reported first-quarter earnings that surpassed analysts' revenue, operating profit, and earnings per share (EPS) expectations. In addition, the company generally increased its full year guidance, making for a beat-and-raise quarter. After the initial pop the shares cooled down to $69.20, up 2.68% from previous close.

What is the market telling us:

Shutterstock's shares are somewhat volatile and over the last year have had 20 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Shutterstock is up 28.6% since the beginning of the year, but at $69.20 per share it is still trading 13.1% below its 52-week high of $79.67 from February 2023. Investors who bought $1,000 worth of Shutterstock's shares 5 years ago would now be looking at an investment worth $1,370.

Is now the time to buy Shutterstock? Access our full analysis of the earnings results here, it's free.