Shutterfly Inc. (SFLY): Today's Featured Internet Laggard

Shutterfly ( SFLY) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Shutterfly fell 73 cents (-2.2%) to $32.80 on light volume. Throughout the day, 777,767 shares of Shutterfly exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in price between $32.77-$34.28 after having opened the day at $33.94 as compared to the previous trading day's close of $33.53. Other company's within the Internet industry that declined today were: Synacor ( SYNC), down 13.2%, Jacada ( JCDA), down 7.7%, ChinaCache International Holdings ( CCIH), down 7.7%, and Selectica ( SLTC), down 5.9%.

Shutterfly, Inc. provides an Internet-based social expression and personal publishing service that enables consumers to share, print, and preserve their digital photos through the medium of photography in the United States. Shutterfly has a market cap of $1.12 billion and is part of the technology sector. The company has a P/E ratio of 82.7, below the average internet industry P/E ratio of 84.9 and above the S&P 500 P/E ratio of 17.7. Shares are up 47.3% year to date as of the close of trading on Wednesday. Currently there are eight analysts that rate Shutterfly a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Shutterfly as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

On the positive front, Yelp ( YELP), up 5.7%, InterXion Holding N.V ( INXN), up 5.3%, Deltathree ( DDDC), up 5.3%, and Tucows ( TCX), up 5%, were all gainers within the internet industry with SINA Corporation ( SINA) being today's featured internet industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).

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