Updated
Updated · stockstory.org · Jun 11
StockStory Backs Netflix, DoorDash and Flags Shutterstock as Consumer Internet Sector Drops 20%
Updated
Updated · stockstory.org · Jun 11

StockStory Backs Netflix, DoorDash and Flags Shutterstock as Consumer Internet Sector Drops 20%

2 articles · Updated · stockstory.org · Jun 11

Summary

  • StockStory named Netflix and DoorDash as consumer-internet buys while urging investors to sell Shutterstock in a new stock screen.
  • A 20% six-month sector pullback versus the S&P 500’s 6.9% gain framed the call, with the firm arguing weaker consumer spending is pressuring demand across the group.
  • Netflix won support for rising paid memberships, a 16.2-point improvement in free-cash-flow margin and buyback-aided earnings growth; DoorDash for 22.9% annual order growth, 25.6% expected revenue growth and 179% annual EPS growth over three years.
  • Shutterstock was singled out as risky because customer spending has fallen 87.9% on average, revenue is forecast to drop 19% over the next 12 months and EPS has declined 6.3% annually over three years.

Insights

Shutterstock is a 'sell' but offers a 10% dividend. Is it a value trap or a hidden income opportunity for investors?
As DoorDash becomes a local commerce giant, can small businesses survive its expansion into groceries, retail, and robotics?