WIX

Wix.com Ltd

TMT


Presented:05/27/2022
Price:$66.81
Cap:$3.83B
Current Price:$166.63
Cap:$9.27B

Presented

Date05/27/2022
Price$66.81
Market Cap$3.83B
Ent Value$5.84B
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S57.25M
Ave Daily Vol1,322,218
Short Int7.56%

Current

Price$166.63
Market Cap$9.27B
Wix.com Ltd. operates a cloud-based website design and development platform. It offers web templates, web editor, web builder, search engine optimization tools, logo maker, web hosting, and electronic mail marketing services. The company was founded by Avishai Abrahami, Nadav Abrahami, and Giora Kaplan on October 5, 2006 and is headquartered in Tel Aviv, Israel.

Publicly traded companies mentioned herein: GoDaddy Inc (GDDY), Squarespace Inc (SQSP), Wix.com Ltd (WIX)

Highlights

The presenter is long shares of Wix.com Ltd (WIX), an Israeli-based company that offers a website building platform and e-commerce functionality, which competes with Squarespace, GoDaddy, and Automattic to varying extents. Since early 2021, the stock has fallen from ~$350 per share to its current $65 based in part on investor concern that WIX’s strength was solely driven by the pandemic. It experienced accelerated growth and signups, which have decelerated meaningfully, and there are also questions regarding the structural profitability of the business. Yet, the presenter sees an attractive valuation based on his expectation for growth to accelerate in 2H’22 and for margins to grow from essentially zero to 20% – 25% in the next two years. Underwriting an 8x multiple on his 2024 gross profit estimate, he sees upside to $175 per share in the next eighteen months.

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Idea Discussion

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