Getty Images Just Struck a Deal with Perplexity AI. Should You Buy GETY Stock Here?

Core Viewpoint - Getty Images (GETY) shares experienced a significant increase of over 50% following a long-term licensing agreement with Perplexity AI, which will integrate Getty's extensive library into its AI-powered search platform [1][3]. Group 1: Partnership Impact - The partnership with Perplexity emphasizes proper content attribution and creator recognition, addressing concerns about AI platforms using copyrighted content without compensation [3]. - This agreement is expected to create a new revenue stream for Getty Images while establishing ethical standards for future AI content partnerships [4]. - The integration of Getty's imagery into Perplexity's platform, which processes approximately 150 million queries weekly, positions Getty at the intersection of traditional content licensing and emerging AI technology [1][3]. Group 2: Stock Performance and Market Sentiment - Despite the initial surge, Getty Images shares ended slightly down on the following trading day, and the stock is down about 8.5% year-to-date [2]. - Wall Street analysts remain positive on Getty Images shares for the next 12 months, indicating a favorable outlook despite current challenges [7]. Group 3: Financial Challenges - Getty Images continues to operate at a loss with negative profit margins, highlighting difficulties in monetizing its extensive content library [5]. - The company is classified as a penny stock, making it susceptible to extreme volatility, with historical declines of about 5% in November and over 4% in December [5].