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$7.48 -0.26 (-3.36%)
10/6/2008 10:00 AM

Shutterfly, Inc. (SFLY)

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The Company is an Internet-based social expression and personal publishing service that enables consumers to share, print and preserve their memories by leveraging its technology, manufacturing, web-design and merchandising capabilities.

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Avatar Lance912 (95.25) Submitted: 10/31/07 4:43 PM : Underperform Start Price: $15.78 SFLY Score: 27.97

I just don't get it. According to Alexa, traffic to their website is down considerably: http://alexa.com/data/details/traffic_details?url=shutterfly.com

This makes sense because people no longer share their photos using shutterfly. Instead, they use flickr or facebook or myspace or whatever.

People who just share their photos and don't buy anything don't do Shutterfly a lot of good anyway, but this was a way for them to get cheap leads. Now, they must rely on return traffic or partnerships (which cost them a lot more per lead than the free photo sharing they used to get).

I just don't see how a site like with no moat, major competitors, decreasing margins (due to the decrease sharing photos effect), and decreased traffic expects to triple its revenues next year and trades at a 100 PE.

I just don't get it.

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