Market Schedule Overview - Investors should note the stock market closures and shortened trading days for the 2025 holiday season, particularly on Christmas Eve and Christmas Day [1] - The NYSE and Nasdaq will remain open on December 24, 2025, with an early closure at 1:00 p.m. ET, while being closed on December 25, 2025, for Christmas [2][4] - New Year's Eve on December 31, 2025, will see the stock market open for regular hours, while it will be closed on New Year's Day, January 1, 2026 [2][4] Market Performance - All three major indexes showed positive movement during midday trading, with the S&P 500 up by 0.32% at $687.00 and the Nasdaq 100 up by 0.28% [3]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Analyst Ratings and Price Targets - Verizon Communications Inc (NYSE:VZ) has a dividend yield of 6.90%. Morgan Stanley analyst Benjamin Swinburne maintained an Equal-Weight rating and reduced the price target from $48 to $47, with an accuracy rate of 73% [6] - JP Morgan analyst Sebastiano Petti maintained a Neutral rating for Verizon and lowered the price target from $49 to $47, with an accuracy rate of 54% [6] - Shutterstock Inc (NYSE:SSTK) has a dividend yield of 6.98%. Needham analyst Bernie McTernan maintained a Buy rating and cut the price target from $30 to $25, with an accuracy rate of 67% [6] - JMP Securities analyst Andrew Boone maintained a Market Perform rating for Shutterstock, with an accuracy rate of 76% [6] - Sirius XM Holdings Inc (NASDAQ:SIRI) has a dividend yield of 5.22%. Rosenblatt analyst Barton Crockett maintained a Neutral rating with a price target of $23, having an accuracy rate of 67% [6] - Barrington Research analyst Patrick Sholl maintained an Outperform rating for SiriusXM with a price target of $28, with an accuracy rate of 56% [6] Group 2: Recent News - Verizon Business and Kodiak AI reached a commercial agreement to enhance Verizon's connectivity and IoT capabilities for Kodiak's driverless trucking solutions [6] - Shutterstock reported mixed quarterly results on Nov. 5 [6] - SiriusXM appointed Zac Coughlin as chief financial officer on Nov. 18 [6]

Core Viewpoint - Shutterstock is positioned as a high-income opportunity within the growing AI sector, despite recent stock price declines and challenges in its older content segment [3][4][14]. Financial Performance - The company has a market capitalization of approximately $718.8 million, with 35.5 million shares outstanding, and offers an annual dividend of $1.29 per share, resulting in a yield of 6.37% [1]. - The stock trades at a forward price-to-earnings ratio of 6.87x, significantly lower than the sector average of 15.01x, indicating that investors are discounting future earnings [2]. - In Q3 2025, revenue increased to $260.1 million from $250.6 million, while net income decreased to $13.4 million from $17.6 million, and diluted EPS fell from 0.50 to 0.37 due to higher costs [6]. - Adjusted net income declined from $46.4 million to $36.4 million, and adjusted EPS fell from 1.31 to 0.99, indicating margin compression [7]. AI Integration and Growth Strategy - Shutterstock is enhancing its offerings by integrating AI tools and services, allowing customers to create content more efficiently [3][8]. - The company is transitioning from being a data supplier to a partner in model design, training, and evaluation, providing tailored content and insights [8]. - The global AI market is projected to grow from nearly $260 billion in 2025 to over $1.2 trillion by 2030, highlighting the potential for Shutterstock's growth in this sector [5]. Analyst Perspectives - Analysts project a growth rate of 14.94% for the full year 2025, with expected earnings of $3 per share, up from $2.61 in 2024 [11]. - Consensus among analysts is neutral, with a "Hold" rating and an average price target of $27.57, suggesting about 30% upside from the current price [12]. Conclusion - Despite trading at a steep discount and facing challenges, Shutterstock is seen as a misunderstood income play in a growing AI environment, with potential for gradual returns driven by its high dividend yield and ongoing investments in AI [13][14].

Group 1 - Grayscale has launched the first Dogecoin spot exchange-traded fund (ETF) in the U.S., which began trading on NYSE Arca [3] - The Grayscale Dogecoin Trust ETF (NYSE:GDOG) has accumulated inflows of $2.16 million and total assets under management of $3.92 million as of November 26 [3] - Bitwise has also launched its Dogecoin ETF (NYSE:BWOW), which achieved a trading volume of $2.83 million on its first day, surpassing Grayscale's debut volume [4] Group 2 - Combined, the Grayscale and Bitwise ETFs have total assets under management of $6.48 million, representing 0.03% of Dogecoin's total market value [4] - Following the launch of the new ETFs, Dogecoin's price increased by 1.39% to $0.1542 over the last 24 hours, with a weekly gain of 4.4% [5] - The Grayscale ETF closed 1.60% higher at $18.29, while the Bitwise DOGE ETF closed at $25.51, up 3.1% [5]

Core Insights - Bitwise launched its Dogecoin ETF under the ticker BWOW on the NYSE, aiming to provide regulated access to Dogecoin for investors [2] - Grayscale's Dogecoin ETF, GDOG, experienced its first inflows of $1.80 million after a slow start, bringing total net assets to $3.50 million [4] Group 1: Bitwise Dogecoin ETF - Bitwise's Dogecoin ETF began trading on the NYSE, certified by NYSE Arca, allowing investors to gain exposure to Dogecoin in a regulated manner [2] - The ETF structure is designed for long-time holders seeking ease of custody and transparency [2] - Bitwise CEO highlighted Dogecoin's sustained relevance and cultural influence, reinforcing the decision to launch the ETF [3] Group 2: Grayscale Dogecoin ETF - Grayscale's GDOG ETF had a flat debut but saw improved activity with $1.80 million in net creations, indicating growing interest [4] - The initial trading volume of $1.4 million was considered solid for an average launch but low for a first-ever spot product [5] - The early inflow suggests that institutional investors may be monitoring the performance of DOGE-linked products before making further investments [5]

Group 1: ETF Launch and Institutional Demand - Grayscale has launched the Grayscale XRP Trust ETF on NYSE Arca under the ticker GXRP, converting it from a private placement introduced in September 2024, aimed at providing straightforward exposure to XRP [2] - The launch of the ETF broadens access to the growing XRP ecosystem, following similar XRP ETF rollouts by Canary Capital and REX Shares, indicating a wave of new offerings tied to digital assets [2][3] Group 2: Regulatory Developments - The regulatory landscape for XRP has improved after Ripple and the U.S. Securities and Exchange Commission (SEC) ended their long-running court battle, with a ruling stating that Ripple's programmatic sales on exchanges did not violate securities laws [4] - The SEC's changed posture under the second Trump administration has led to accelerated ETF approvals and conversions across the sector, including several Grayscale products tied to other cryptocurrencies [5] Group 3: Price Action and Technical Analysis - XRP is currently trading near $2.09, up about 2% on Monday, but remains trapped inside a large descending triangle that has guided price action since August [9][10] - The price is defended by sellers at a down-sloping trendline, while buyers are stepping in near a rising support base around $1.9, which is a key level for investors [11][18] - A clean break below the support at $1.9 could lead to a new leg lower toward $1.7 and potentially $1.5, while buyers need to reclaim $2.19 and close above the descending trendline near $2.4 to regain momentum [19][20]

Core Viewpoint - Billionaire investor Bill Ackman advises against rushing the IPOs of mortgage giants Fannie Mae and Freddie Mac, suggesting a more measured approach to maximize taxpayer value [1][2]. Group 1: IPO Strategy - Ackman proposes a three-step reform plan to secure "hundreds of billions of dollars in value" for taxpayers, emphasizing that rushing to IPO is a mistake and that the companies are worth significantly more [2]. - The proposed steps include the Treasury acknowledging past payments, exercising warrants for 79.9% common stock ownership, and relisting both companies on the New York Stock Exchange [2][3]. - Ackman believes this strategy could lead to a potential market cap of $400 billion for Fannie Mae and Freddie Mac [3]. Group 2: Market Preparation - Ackman stresses the importance of careful preparation before an IPO, criticizing the previous administration's "net worth sweep" as detrimental to the companies' capital rebuilding efforts [3][4]. - He highlights the need to reset capital levels and establish the right management teams before proceeding with an IPO [4]. Group 3: Mortgage Market Protection - Ackman's plan aims to prevent widening mortgage spreads that could result from a rushed IPO, advocating for keeping the entities in conservatorship while listing them on the NYSE [4]. - This approach is presented as a way to balance the risks and benefits, offering potential for narrowing spreads while avoiding disruption in the mortgage market [4]. Group 4: Economic Outlook - Beyond the specific case of Fannie Mae and Freddie Mac, Ackman expresses optimism for the U.S. economy, citing factors such as massive AI investment, deregulation, and tax reforms as positive influences [6]. - He advocates for initiatives like universal 401(k) plans to ensure broader participation in capitalism and address wealth disparity issues [6].

Group 1 - The article discusses the recent challenges faced by Getty Images, particularly after missing Q1 EPS and in the context of the merger approval between Shutterstock and Getty Images [1] - The author has a long history of investment analysis, focusing on identifying underappreciated companies that can return value to investors [1] Group 2 - The article does not provide any specific financial data or performance metrics related to Getty Images or Shutterstock [2][3]

Core Insights - Shutterstock Inc. reported third-quarter earnings that exceeded expectations, driven by strong growth in its Data, Distribution, and Services division [1] - Adjusted earnings per share were $0.99, surpassing analyst estimates of $0.63, while revenue increased 4% year over year to $260.1 million, exceeding forecasts of $255.6 million [1] Financial Performance - The Content segment experienced a decline of 5% year over year to $194.4 million, whereas the Data, Distribution, and Services business surged 40% to $65.7 million, accounting for 25% of total revenue [2] - Adjusted EBITDA rose 13% to $79.4 million, with the margin expanding to 30.5% from 27.9% a year ago [2] - Free cash flow increased significantly to $75.2 million from $45.7 million in the same period last year, and the company maintained adjusted EBITDA margins above 30% for a second consecutive quarter [2] Subscriber Metrics - The subscriber base stood at 1.06 million at quarter-end, a slight decrease from 1.105 million a year earlier [3] - The company is integrating AI image, video, and audio generation tools into its unlimited content offerings to enhance its creative ecosystem [3]

Financial Performance - Total revenue for Q3 2025 was $260.1 million, a 3.0% increase from $250.6 million in Q3 2024[17] - Net income for Q3 2025 decreased to $13.4 million, down 24.8% from $17.6 million in Q3 2024[17] - Earnings per share (EPS) for Q3 2025 was $0.38, compared to $0.50 in Q3 2024, reflecting a 24.0% decline[17] - The company reported a comprehensive income of $11.0 million for Q3 2025, down from $21.9 million in Q3 2024[20] - Net income for the nine months ended September 30, 2025, was $61,515,000, compared to $37,361,000 for the same period in 2024, representing a 64.5% increase[24] - Pro forma revenue for the three months ended September 30, 2025, was reported at $260.1 million, compared to $261.6 million for the same period in 2024[74] - The Company reported a net income before income taxes of $31.4 million for the three months ended September 30, 2025, compared to $21.2 million for the same period in 2024[74] - For the three months ended September 30, 2025, total revenue was $260.1 million, a 3.0% increase from $250.6 million in the same period of 2024[109] - Revenue for the three months ended September 30, 2025, was $260.1 million, up from $250.6 million in 2024, reflecting a growth of 3.0%[123] - Total revenue for the nine months ended September 30, 2025, was $769.704 million, compared to $684.956 million for the same period in 2024, indicating a year-over-year increase of approximately 12.4%[256] Assets and Liabilities - Total current assets increased to $336.8 million as of September 30, 2025, up from $256.0 million at the end of 2024, representing a 31.2% growth[15] - Total liabilities decreased slightly to $781.2 million as of September 30, 2025, compared to $790.8 million at the end of 2024[15] - Cash and cash equivalents increased to $165.5 million as of September 30, 2025, compared to $111.3 million at the end of 2024, a growth of 48.8%[15] - Total cash and cash equivalents at the end of the period increased to $165,536,000 from $131,393,000 year-over-year, marking a 26% growth[24] - As of September 30, 2025, the Company reported $76.3 million in unbilled receivables, with $53.7 million recorded in Accounts Receivable and $22.6 million in Other Assets[44] - The Company’s long-lived tangible assets totaled $62.7 million as of September 30, 2025, down from $66.4 million as of December 31, 2024[125] Operating Expenses - Operating expenses for Q3 2025 totaled $227.6 million, a decrease of 2.0% from $232.4 million in Q3 2024[17] - Total operating expenses for the nine months ended September 30, 2025, were $692.3 million, compared to $629.4 million in 2024, indicating an increase of 10.0%[123] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $130,473,000, significantly higher than $24,680,000 in 2024[24] - The Company reported a net cash used in investing activities of $37,438,000 for the nine months ended September 30, 2025, compared to $156,120,000 in 2024[24] - The Company completed the acquisition of Envato Pty Ltd. on July 22, 2024, for an aggregate amount of $250.2 million, incurring approximately $7.0 million in transaction costs[64] - The Company completed the acquisition of Envato for approximately $63.4 million, which includes $90.6 million in cash and cash equivalents, and $106.2 million in identifiable intangible assets[72] - The acquisition of Backgrid was finalized for about $20 million, with transaction costs of approximately $1.5 million included in general and administrative expenses[67] - The total assets acquired from Envato and Backgrid amounted to $439.9 million, with total liabilities assumed of $168.5 million, resulting in net assets acquired of $271.4 million[72] Shareholder Returns - Cash dividends paid in the nine months ended September 30, 2025, totaled $34,823,000, compared to $31,938,000 in 2024[24] - The Company declared cash dividends of $0.33 per share, totaling $11.7 million for the three months ended September 30, 2025, compared to $0.30 per share and $10.6 million in 2024[99] - The company repurchased treasury shares amounting to $41,591,000 in 2024, with no repurchases reported in 2025[24] - The Company has repurchased approximately 5.5 million shares of common stock since 2015 at an average cost of $48.86, with $30.2 million remaining authorization under the 2023 Share Repurchase Program[98] Mergers and Acquisitions - The proposed merger with Getty Images Holdings, Inc. is expected to enhance market position and expand product offerings[11] - The merger agreement with Getty Images was approved by a majority of Shutterstock stockholders on June 10, 2025, with the transaction expected to close subject to regulatory approvals[32][33] - The Company is in the process of a merger with Getty Images, with cash consideration of $9.50 per share and 9.17 shares of Getty Images common stock for each share of Shutterstock common stock outstanding prior to the transaction close[34] Tax and Regulatory - The effective tax rate for the three months ended September 30, 2025, was a net expense of 57.4%[111] - The effective tax rate for the nine months ended September 30, 2024, was 23.2%, while it would have been 32.4% excluding discrete items[115] - The Company recorded additions to unrecognized tax benefits of $4.4 million and $5.0 million for the three and nine months ended September 30, 2024, respectively[117] Other Financial Metrics - The Company recognized interest expense of $4.2 million for the three months ended September 30, 2025[94] - The interest rates on amounts borrowed under the A&R Credit Agreement range from 0.375% to 0.750% based on the company's consolidated net leverage ratio[258] - A hypothetical 10% change in interest rates would not have a material impact on the company's interest expense as of September 30, 2025[258] - The company does not currently use derivatives or other financial instruments to hedge foreign currency exchange risk but may consider doing so in the future[255] - The company does not believe inflation has had a material effect on its business or financial condition[259]