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Shutterstock Attempting To Shrug Off Multiple Downgrades

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Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Shutterstock Inc (NYSE: SSTK) shares were trading higher by $0.25 at $34.67 in Friday's session. The issue is attempting to rebound from its $16 plus shellacking it underwent in Thursday's session.

Along with a mixed Q2 report for adjusted EPS ($0.31 vs. $0.30 estimates) with lower sales ($104.4 million vs. $105.4 million estimates), the company lowered Q3 sales and FY sales to $425-$430 million vs. $440.7 million.

To make matters worse, the company's CFO Tim Bixby resigned. The trio of bad news resulted in a decline from Wednesday's close of $50.75 all the way to $32.32 before rebounding to close at $34.42.

Amidst of slew of downgrades Friday morning, the issue declined off the open but found support ahead of Wednesday's low (S32.54) and rebounded to $35.24, before falling back under $35. Investors buying the issue as it came off its lows may be banking on a double bottom being put in place for the time being.

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