Reasons for the Decline of Shutterstock (SSTK) Stock in 2022

Bernzott Capital Advisors, an investment management firm, published its “US Small Cap Value Fund” fourth-quarter 2022 investor letter, a copy of which can be downloaded here. In the fourth quarter, the fund delivered a 10.36% net return compared to an 8.42% return for the Russell 2000 Value Index and a 9.21% return for the Russell 2500 Value Index. Health Care was the significant contributor to the fund’s performance in the quarter, while Materials detracted from the performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Bernzott Capital Advisors highlighted stocks like Shutterstock, Inc. (NYSE:SSTK) in the Q4 2022 investor letter. Based in New York, New York, Shutterstock, Inc. (NYSE:SSTK) is a technology company. On January 23, 2023, Shutterstock, Inc. (NYSE:SSTK) stock closed at $62.19 per share. One-month return of Shutterstock, Inc. (NYSE:SSTK) was 19.67%, and its shares lost 33.64% of their value over the last 52 weeks. Shutterstock, Inc. (NYSE:SSTK) has a market capitalization of $2.227 billion.

Bernzott Capital Advisors made the following comment about Shutterstock, Inc. (NYSE:SSTK) in its Q4 2022 investor letter:

“Shutterstock, Inc. (NYSE:SSTK): The stock declined as business trends decelerated in ecommerce and Europe (approximately one-third of revenues). Additionally, the CEO left unexpectedly mid-year, and while the transition to his replacement has been orderly, it nevertheless represents a risk factor. There remains the potential for further weakness in its ecommerce and advertising markets as the economy slows. The company’s transition from a commoditized and competitive stock imagery provider to a creative tools provider carries risks, and thus we elected to exit the position.”

Zapp2Photo/Shutterstock.com

Shutterstock, Inc. (NYSE:SSTK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Shutterstock, Inc. (NYSE:SSTK) at the end of the third quarter which was 21 in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.