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Shutterstock (SSTK) Surges 9.3%: Is This an Indication of Further Gains?

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Shutterstock (SSTK - Free Report) shares ended the last trading session 9.3% higher at $20.83. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1% gain over the past four weeks.

Shutterstock is benefiting from an expanding clientele and the Envato acquisition. Strong demand for Shutterstock’s AI-generated content has been a key catalyst. The launch of Generative Plus, which is a low-cost, month-to-month subscription specific to the licensing of AI-generated Content, is expected to drive top-line growth. 

This online marketplace for royalty-free images and videos is expected to post quarterly earnings of $1.65 per share in its upcoming report, which represents a year-over-year change of +65%. Revenues are expected to be $274.77 million, up 24.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Shutterstock, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SSTK going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Shutterstock is part of the Zacks Internet - Content industry. Genius Sports Limited (GENI - Free Report) , another stock in the same industry, closed the last trading session 2.9% higher at $10.96. GENI has returned 5.7% in the past month.

Genius Sports Limited's consensus EPS estimate for the upcoming report has changed +156.5% over the past month to $0. Compared to the company's year-ago EPS, this represents a change of +100%. Genius Sports Limited currently boasts a Zacks Rank of #2 (Buy).


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