This Market-Beating Stock Is Embracing the AI-Generated Content Trend (and No, It's Not Microsoft)
Market-beating stocks sometimes do so quietly, as is the case with stock-image company Shutterstock (NYSE: SSTK). It may only be outperforming the S&P 500 by a slim margin, but as of this writing, it's up about 196% since its initial public offering (IPO) in 2012, compared to a return of 179% for the market.
Many investors believe that images created by artificial intelligence (AI) pose a material threat to the long-term viability of Shutterstock's business. And that may actually be true, but the company seems to be making the smartest play it can, given the cards it's been dealt: embrace AI-generated content.
Shutterstock is the kind of business I love: a marketplace selling third-party stuff. What's great about these businesses is they can enjoy very high profit margins, because they're not producing or sourcing the product but providing the marketplace where buyers and sellers connect.
Source Fool.com