Money Investor
Long/short equity

Shutterstock Valuation Makes Me Shudder

There is one attribute that I will not tolerate in a growth stock trading at astronomical valuations, and that is the lack of a significant barrier to entry which will ultimately breed future competition and compress earnings in the future. Amazon (NASDAQ:AMZN) is an example of a company with outrageous valuations, but one that has built out an infrastructure platform that grows increasingly harder to replicate as time passes. A company trading at nosebleed valuations, with little to no barrier to entry for competitors is Shutterstock (NYSE:SSTK). Shutterstock is in the business of offering a marketplace for digital imagery, both still photographs and videos. Seeing a need to simplify the onerous process of licensing images and...

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