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Is Wix Com Stock a Buy?

Last updated on October 1, 2022 @ 12:50 am

Wix.com Ltd. (NASDAQ: WIX) went public in 2013, and since then, the stock has been on a tear. The company’s innovative website builder platform has allowed it to grow rapidly and become one of the leading website builders in the world.

And with the recent launch of Wix ADI, which allows users to create a website in minutes without any prior design or coding experience, it seems like the sky is the limit for this company.

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So is Wix stock a buy at its current price of around $80 per share? Let’s take a look at the company’s fundamentals to see if there are any red flags that investors should be aware of.

PRO TIP: Wix.com is a publicly traded company on the NASDAQ stock exchange under the ticker symbol WIX. As of February 2021, the company has a market capitalization of $13.5 billion.

However, we recommend caution when considering an investment in Wix.com stock. The company is unprofitable, and its stock price has been highly volatile in recent years.

One potential concern is that Wix’s revenue growth has been slowing down in recent quarters. In Q4 2017, Wix’s revenue grew by 30% year-over-year, which was down from 39% growth in Q3 2017 and 47% growth in Q2 2017.

This slowdown in revenue growth is likely due to the company’s maturing business model, as it now has a larger base of recurring revenue from users who have signed up for its premium subscription plans.

Another concern is that Wix’s net income has been declining in recent quarters, despite its strong top-line growth. In Q4 2017, Wix reported a net loss of $4.8 million, compared to a net loss of $1.9 million in Q4 2016.

This deterioration in profitability is likely due to the company’s heavy investment in marketing and R&D to fuel its growth.

Conclusion

Despite some concerns about its slowing revenue growth and deteriorating profitability, I believe that Wix stock is still a buy at its current price. The company’s platform is very innovative and user-friendly, and with the launch of Wix ADI, it seems poised for continued growth.

Morgan Bash

Morgan Bash

Technology enthusiast and Co-Founder of Women Coders SF.