Latest news with #WIX
Yahoo
08-07-2025
- Business
- Yahoo
The Top 5 Analyst Questions From Wix's Q1 Earnings Call
Wix's first quarter results for 2025 were met with a sharply negative market reaction, despite management citing robust new user bookings and notable product innovation. CEO Avishai Abrahami credited the quarter's performance to continued demand across key geographies, the successful rollout of new AI-powered tools, and a stronger-than-expected new user cohort. Management was cautious in tone, acknowledging macroeconomic uncertainty could impact the durability of recent growth. Is now the time to buy WIX? Find out in our full research report (it's free). Revenue: $473.7 million vs analyst estimates of $471.9 million (12.8% year-on-year growth, in line) Adjusted EPS: $1.55 vs analyst expectations of $1.66 (6.4% miss) Adjusted Operating Income: $99.84 million vs analyst estimates of $94.63 million (21.1% margin, 5.5% beat) The company reconfirmed its revenue guidance for the full year of $1.99 billion at the midpoint Operating Margin: 7.9%, up from 2.3% in the same quarter last year Billings: $510.9 million at quarter end, up 11.7% year on year Market Capitalization: $9.15 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ygal Arounian (Citigroup) asked about the monetization potential and market reach for Wixel. CEO Avishai Abrahami explained that Wixel is a separate subscription product targeting both Wix users and a broader creative audience, but he emphasized it is early in its adoption cycle. Ken Wong (Oppenheimer) sought clarity on the conservatism in guidance despite strong April and May trends. CFO Lior Shemesh responded that macro factors outside of Wix's control prompted a cautious approach to outlook, even as core business metrics remain strong. John Byun (Jefferies) questioned the deceleration in Partners revenue growth and the distribution approach for Wixel. Shemesh cited foreign exchange and GPV trends as reasons for slower growth, while Abrahami outlined a multi-channel marketing strategy for Wixel's launch. Elizabeth Porter (Morgan Stanley) probed what differentiates Wixel from established design software and the rationale for its pricing. Abrahami highlighted Wixel's AI-first approach and unique user interface, designed for the future of content editing rather than replicating existing tools. Brad Erickson (RBC Capital Markets) inquired about the impact of AI agents on website structure and the future mix between Partners and self-creators. Abrahami suggested current buyer behavior remains steady, with AI likely to increase complexity but not fundamentally alter the split in the near term. Looking ahead, our analysts will be closely watching (1) the pace of adoption and monetization for Wixel and Astro, (2) whether strong new user cohort trends continue through the rest of the year, and (3) the resilience of the Business Solutions segment as economic conditions evolve. Progress on AI-powered product rollouts, as well as the effectiveness of expanded marketing efforts, will also serve as key indicators of execution. Wix currently trades at $163.66, down from $182.01 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
2 Reasons to Sell WIX and 1 Stock to Buy Instead
Wix's stock price has taken a beating over the past six months, shedding 26% of its value and falling to $164.79 per share. This may have investors wondering how to approach the situation. Is there a buying opportunity in Wix, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team's opinion, it's free. Even though the stock has become cheaper, we're sitting this one out for now. Here are two reasons why you should be careful with WIX and a stock we'd rather own. Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, Wix grew its sales at a 11.5% annual rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the software sector, which enjoys a number of secular tailwinds. For software companies like Wix, gross profit tells us how much money remains after paying for the base cost of products and services (typically servers, licenses, and certain personnel). These costs are usually low as a percentage of revenue, explaining why software is more lucrative than other sectors. Wix's gross margin is slightly below the average software company, giving it less room than its competitors to invest in areas such as product and sales. As you can see below, it averaged a 68.1% gross margin over the last year. Said differently, Wix had to pay a chunky $31.92 to its service providers for every $100 in revenue. Wix isn't a terrible business, but it isn't one of our picks. Following the recent decline, the stock trades at 4.9× forward price-to-sales (or $164.79 per share). While this valuation is fair, the upside isn't great compared to the potential downside. We're pretty confident there are superior stocks to buy right now. We'd suggest looking at a fast-growing restaurant franchise with an A+ ranch dressing sauce. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
20-06-2025
- Business
- Yahoo
Morgan Stanley Maintained a Buy Rating on Wix.com (WIX), Kept the PT Unchanged
Ltd. (NASDAQ:WIX) is one of the 11 Best Tech Stocks to Buy On the Dip. On June 13, analyst Elizabeth Porter from Morgan Stanley maintained a Buy rating on Ltd. (NASDAQ:WIX) with a price target of $207. The rating comes after the company released its Q1 2025 results in May. The company delivered a robust start to the year with Q1 total bookings of $511 million up 12% year-over-year. The revenue for the quarter totaled $474 million, exceeding expectations and reflecting 13% growth. Management noted this to be driven by accelerated Self Creators growth and momentum in Studio adoption. A content marketing website showing the audience reach of the company's products. Analyst Porter appreciated the robust performance of Ltd. (NASDAQ:WIX) across key indicators including bookings, revenue, operating margins, and free cash flow. Porter noted this growth suggests a solid demand and counters concerns about competition and AI displacement risks. Management of Ltd. (NASDAQ:WIX) maintained a full-year booking outlook at $2.025 billion to $2.060 billion reflecting an 11% to 13% increase year-over-year. The analyst acknowledged the outlook to be conservative due to macroeconomic challenges, particularly in the Business Solutions segment. While we acknowledge the potential of WIX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
29-05-2025
- Business
- Yahoo
Wix.com price target lowered to $230 from $240 at B. Riley
B. Riley analyst Naved Khan lowered the firm's price target on (WIX) to $230 from $240 and keeps a Buy rating on the shares following the Q1 results. continues to see strong demand trends, with Partner Channel benefiting from the popularity of Studio and AI enhancements driving DIY growth, while Q2-to-date trends have remained healthy, the analyst tells investors in a research note. The company's track record of product innovation and the recent launches position the business for sustained share gains and healthy growth in bookings and free cash flow, the firm says. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on WIX: Disclaimer & DisclosureReport an Issue Deckers downgraded, Morgan Stanley upgraded: Wall Street's top analyst calls acquires Hour One to expand generative AI capabilities upgraded to Outperform from Neutral at Baird Ltd's Strong Start to 2025: Earnings Call Highlights price target lowered to $200 from $257 at Seaport Research Sign in to access your portfolio
Yahoo
26-05-2025
- Business
- Yahoo
Wix Acquires Hour One to Boost Generative AI and Drive Innovation
Ltd. WIX has announced the acquisition of Hour One, a pioneer in generative artificial intelligence (AI) media creation. This move further strengthens Wix's position at the forefront of AI-driven digital experiences, enhancing its capabilities in advanced web and visual design. Hour One specializes in technology that enables scalable production of studio-quality content. Its platform allows users to create personalized videos and interactive media, combining storytelling with real-time engagement. Its proprietary cloud infrastructure integrates generative AI inference with advanced 3D rendering, making it a valuable asset that positions Wix at the forefront of scalable, high-impact content creation. Ltd. price-consensus-chart | Ltd. Quote Wix highlighted that this acquisition significantly expands its AI expertise and aligns with its vision of making web creation faster, smarter and more immersive. Bringing this technology in-house allows the company to maintain greater control over front-end innovations, reduce third-party dependencies and manage costs more effectively. WIX is focusing on generative AI, which represents a significant business growth driver. It is also embedding AI assistants across its platform and continues to add new products to capitalize on the AI boom. New AI business assistants are improving operational efficiency and customer conversion rates. The recent launch of Wixel is a primary step in this direction. Wixel introduced in May 2025 is a new standalone AI-driven visual design platform designed to make professional-grade design accessible to everyone. Combining advanced AI with a user-friendly interface and robust features, Wixel empowers users to easily transform ideas into high-quality visual content with minimal effort. Before that, Wix launched the Model Context Protocol (MCP) Server, allowing developers and business owners to create production-ready Wix solutions through AI coding assistants and large language models. The MCP Server enables seamless code generation and business management using natural language via tools like Claude, Cursor and Windsurf. It provides access to key Wix functionalities such as inventory management, staff scheduling, secure checkouts, ticketing, a flexible CMS and CRM features for lead capture and back-office operations. In April, 2025, Wix introduced an AI-powered adaptive content application. This innovative tool is designed to dynamically personalize website content, tailoring it to individual visitor characteristics and user-defined instructions, thereby boosting engagement and enhancing the user experience. Wix unveiled Astro, an AI-powered business assistant designed to enhance user productivity and streamline business operations in April 2025. This innovative tool allows users to interact through a chat-based interface to perform a wide range of business and back-office tasks effortlessly. Astro represents the first in a series of AI-driven agents Wix plans to introduce, setting the foundation for increased efficiency, better monetization and business growth for users. Wix is focusing on AI to reduce user friction, enhance design quality and speed up time-to-market for customers. Recently, WIX reported first-quarter 2025 results, wherein non-GAAP earnings per share (EPS) came to $1.55 compared with $1.29 in the year-ago quarter. Quarterly revenues increased 13% year over year to $473.7 million. The top line exceeded management's guidance ($469-$473 million), driven by strong performance of the new user cohort and continued healthy engagement from existing users. Wix is focusing on AI to reduce user friction, enhance design quality and speed up time-to-market for customers. Wix continues to expect revenues to grow 12-14% in the range of $1.97-$2 billion for 2025. Management reiterated non-GAAP total gross margin at 70% and non-GAAP operating expenses to be 47-48% of 2025 net sales. WIX currently carries a Zacks Rank #3 (Hold). Shares of the company have declined 11% in the past year against the Computers - IT Services industry's growth of 5.2%. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here. Image Source: Zacks Investment Research Some better-ranked stocks from the broader technology space are Unisys Corporation UIS, Stem, Inc. STEM and Cognizant Technology Solutions Corporation CTSH. UIS sports a Zacks Rank #1, while STEM and CTSH carry a Zacks Rank #2 (Buy). Unisys' earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with the average surprise being 46.85%. In the last reported quarter, UIS delivered an earnings surprise of 79.17%. The company's long-term earnings growth rate is 15%. Its shares have increased 6.8% in the past year. Stem's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with the average surprise being 12.34%. In the last reported quarter, STEM delivered an earnings surprise of 25%. Its shares have surged 8.3% in the past six months. Cognizant's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6.38%. In the last reported quarter, CTSH delivered an earnings surprise of 3.36%. Its shares have increased 15.8% in the past year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report Unisys Corporation (UIS) : Free Stock Analysis Report Stem, Inc. (STEM) : Free Stock Analysis Report Ltd. (WIX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
