JMP Securities analyst Andrew Boone downgraded Shutterstock to Market Perform from Outperform without a price target. The analyst believes generative artificial intelligence increases competition for the company’s core image and video marketplace. Generative AI is still early, but as awareness builds of its capabilities and images become more realistic, it could represent a "material headwind to stock media usage as text-to- image generators compete directly with traditional stock image marketplaces," Boone tells investors in a research note. The analyst says text-to-image generative AI reduces the value of Shutterstock’s vast media library.
Published first on TheFly
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