Mr WaveTheory

Jupitermedia CEO Attacks Shutterfly

It sounds alot like sour grapes. The truth is that Jupitermedia is not growing that fast either.

I wrote earlier about ShutterFly in the post Will the ShutterFly IPO Fly? in which I wrote that it wouldn't. ShutterFly broke its IPO price just two days after the offering. Read more

An In-Depth Look at Shutterfly's IPO

Nice post Bill. I would add that ShutterFly has:

* A very large market opportunity
* Serious pricing pressure from Snapfish (including a 50% price cut in the last 6 months)
* A rich valuation.

I looked at the prospectus and here are my thoughts

ShutterFly, Inc.'s pending IPO proves that dot-com IPOs are back. ShutterFly enables consumers to upload, share, and print & print photos online. ShutterFly, Inc. is trying to sell 5.8 million shares at between $13-15 per share in an IPO worth roughly $73 million. With the excitement over photo sharing and the growing popularity of services like FlickR, I took alook at the ShutterFly prospectus to see for myself whether to snap up some shares on the IPO.

Market Opportunity

ShutterFly is going after a very broad market opportunity.
We are an Internet-based social expression and personal publishing service that enables consumers to share, print and preserve their memories by leveraging our technology, manufacturing, web-design and merchandising capabilities. Our vision is to make the world a better place by helping people share life’s joy. Our mission is to build an unrivaled service that enables deeper, more personal relationships between our customers and those who matter most in their lives. Today, with the evolution of digital cameras and technology, millions of people around the world are capturing their memories and communicating in more meaningful ways. We provide a wide range of products and services that allow consumers to upload, edit, enhance, organize, find, share, create, print and preserve their digital photos.
What I like about the photo sharing market is that it takes an existing business that used to be offline and transplants the entire industry online. The company's market is very large and that is why the company has shown some great numbers.

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