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GIPHY and TikTok team up for AI-powered GIFs in messaging

Published 10/29/2024, 07:24 AM
SSTK
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NEW YORK - GIPHY, the prominent online GIF library, is joining forces with TikTok to enhance its messaging feature with AI-driven GIF suggestions. This collaboration is set to introduce a new level of creative expression for TikTok users. The integration, which is expected to be launched in late Q4 or early Q1, will embed GIPHY's API within TikTok's direct messaging system, providing users with a personalized selection of GIFs to enrich their communication.

The partnership is a strategic move to connect TikTok's vibrant user community more deeply by allowing seamless sharing of GIPHY's extensive content within chats. Jason Stein, GIPHY's Senior Vice President of Business and Corporate Development, expressed enthusiasm for the collaboration, emphasizing the potential for enriched user interaction on TikTok's platform. TikTok's recommendation engine will automatically suggest contextually relevant GIFs from GIPHY's library, aiming to make conversations more engaging.

Franklin Ramirez, Global Partnerships Director at TikTok, highlighted the enhancement of TikTok's messaging capabilities, hinting at future collaborative developments with GIPHY. The integration underscores TikTok's commitment to providing its community with innovative ways to connect and express themselves.

GIPHY, acquired by Shutterstock , Inc. (NYSE: NYSE:SSTK) in 2023, has become an essential tool for visual communication online, with a reach of over 1 billion daily users and serving more than 10 billion pieces of content each day. Shutterstock, a global creative platform, supports a broad spectrum of high-quality creative content and innovative technology solutions for brand and media partners.

This partnership reflects the ongoing trend of social and messaging platforms seeking to enhance user experience through richer, more interactive features. The information is based on a press release statement.

In other recent news, Shutterstock, Inc. declared a cash dividend of $0.30 per share, reflecting its commitment to shareholder value. The company also reported a 5.4% year-over-year increase in second-quarter revenue, reaching $220 million, largely driven by its Data, Distribution, and Services business. However, the Content business saw a 9% decline in revenue. Shutterstock also announced the discontinuation of its drug candidate '154, shifting focus to developing SL-325, a DR3 antibody for treating inflammatory bowel disease.

Analysts from Citi downgraded Shutterstock from Buy to Neutral, reducing its price target to $2.00. Needham also lowered its price target to $55, maintaining a Buy rating, despite decreased revenue projections for the Content division. In other developments, Shutterstock acquired Envato, expected to bolster the Content business and add an estimated $75 million to 2024 revenues. The company also launched new GenAI 3D capabilities and partnered with Databricks, indicating a focus on technological advancements.

These recent developments highlight Shutterstock's strategic moves to adapt to market changes and maximize shareholder value, while also investing in future growth opportunities.

InvestingPro Insights

The collaboration between GIPHY and TikTok comes at an interesting time for Shutterstock (NYSE: SSTK), GIPHY's parent company. According to InvestingPro data, Shutterstock's stock has faced challenges recently, with a 30.38% price decline over the past three months and currently trading near its 52-week low. Despite these headwinds, there are positive indicators that suggest potential for recovery and growth.

InvestingPro Tips reveal that Shutterstock's management has been aggressively buying back shares, which often signals confidence in the company's future prospects. This strategy aligns well with the company's efforts to expand its reach through partnerships like the GIPHY-TikTok integration. Additionally, Shutterstock boasts a high shareholder yield and has raised its dividend for 5 consecutive years, demonstrating a commitment to returning value to investors.

The company's financial health appears solid, with InvestingPro data showing a market capitalization of $1.05 billion and a price-to-earnings ratio of 22.34. Shutterstock's revenue for the last twelve months as of Q2 2024 stood at $884.84 million, with a 4.6% growth rate. The gross profit margin of 58.73% indicates a strong ability to generate profit from its core business activities.

These metrics suggest that while Shutterstock faces short-term market challenges, its underlying business fundamentals and strategic moves, such as the GIPHY-TikTok partnership, position it for potential long-term growth. Investors interested in a deeper analysis can find 11 additional InvestingPro Tips for Shutterstock, offering a more comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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