Back to top

Analyst Blog

It seems that there is no end to Shutterfly Inc.’s (SFLY - Analyst Report) acquisition spree. This California-based personalized photo services company recently purchased a sought-after online provider of photographic and video equipment rentals, BorrowLenses for an undisclosed amount.

With its business spread across San Carlos, CA and Boston, MA, BorrowLenses offers photographers and videographers with a variety of cameras, lenses, and other equipments. Orders are delivered through mail or can be picked up from any of its 30 independent locations across 12 states.

Shutterfly is focused on growing its business through strategic partnerships with retailers and through acquisitions. Some of Shutterfly’s latest acquisitions include R&R Images, which is engaged in premium stationery printing and product design, in Aug 2013; MyPublisher, one of the photo book industry pioneers in May 2013; ThisLife, which offers a cloud-based solution for protecting, organizing and sharing photos and videos in Jan 2013; Fuji Film’s photo creating and sharing website SeeHere.com in Oct 2012 and Kodak Gallery online photo services (formerly known as Ofoto) in May 2012.

In the last three years ended 2012, Shutterfly also took control of a mobile application developing company – Penguin Digital (2012); Israel-based photo software company – Photoccino (2012), a leading online social expression and publishing services company – Tiny Prints (2011) as well as TinyPictures (2009) and Nexo (2008).

Shutterfly, which mainly sells photo books, greeting cards, calendars and ancillary products, derives over 50% of its revenues from the fourth quarter of every year owing to the holiday season. Since Shutterfly’s business is extremely seasonal, management intends to register continued improvement in non-holiday growth rates by leveraging its other side of the business.

The latest acquisition is a part of Shutterfly’s relentless efforts to shore up its non-seasonal business and diversify its revenue stream. Through this acquisition, Shutterfly can strengthen its presence in the fast growing sharing economy. Also, in order to boost non-seasonal products, Shutterfly is also striving hard to build its commercial printing business.

Shutterfly currently has a Zacks Rank #2 (Buy). Internet content companies that warrant a look include Shanda Games Ltd (GAME - Snapshot Report), WebMD Health Corp. (WBMD - Snapshot Report) and Yelp Inc. (YELP - Snapshot Report), all with a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SIGNET JEWE… SIG 116.37 +7.72%
CHYRONHEGO… CHYR 2.72 +5.84%
US SILICA H… SLCA 70.72 +4.00%
MALLINCKROD… MNK 80.11 +2.32%
RF MICRO DE… RFMD 11.76 +2.31%