After researching the market and competitive landscape for Constant Contact (CTCT), I have concluded that the company is a good short candidate. The stock’s current valuation is predicated on unrealistically optimistic earnings growth projections from analysts.
Competitive Landscape: Constant Contact Feeling Pressure From Both Sides
Online email services face a new threat from Amazon (AMZN), which has introduced a product called Sendy, a newsletter app that can be purchased for $59. The app utilizes Amazon’s SES (simple email service) platform to send out newsletters to distribution lists. Unlike numerous other email services, which require you to log in to their website to send emails, Sendy can be self-hosted on a company’s website and is...
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