Match Group, Shutterfly stocks fall after Goldman starts coverage at sell
Shares of Match Group Inc. and Shutterfly Inc. are down 2.4% and 2.5%, respectively, after Goldman Sachs analyst Michael Ng initiated coverage of both stocks at sell. He called Match's valuation "high relative to its growth" and argued that the company appears destined for a slowdown in Tinder Gold's net new membership. Ng also said that marketing investments around the Hinge product could weigh on Match's ability to expand its margins. He assigned a price target of $45. For Shutterfly, Ng is concerned about the "declining relevancy of the core paper-based products" and notes that the company appears to be pushing users more toward custom products. " Customer growth has stalled and acquisition costs are rising reflecting the rising cost of media, as well as category challenges," he wrote. Ng has a $40 price target on shares. Shutterfly's stock has fallen 21% over the past three months, while the S&P 500 has dropped 0.8%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.