Wix

Wix has been a disappointment going from 82 or so in April down to 60 now.

Not a top performer over the last 10 months.

Time to put that $ elsewhere?

Anyone still holding?

Move into something that’s moving?

Any ideas?

Twtr
Kmi?

I still have some shares that I bought in July and Nov of last year about about the same price as is it today.

I run a semi-concentrated portfolio - several stocks make up the vast majority dollar-wise, but then I’ve got fingers dipped in another two dozen stocks. Sometimes I take one of those finger-dip size positions up to be a major contender, sometimes I sell a finger-dip out completely. Wix is one I’m still sitting on the fence with. I admit I probably would have sold it out had Bear not been so enthusiastic a little while ago.

1 Like

Y the enthusiasm?
The market doesn’t share that sentiment.

From zacks 11.27.17

Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.
One such stock that you may want to consider dropping is Wix.com Ltd. WIX, which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in WIX.

4 Likes

Zacks upgraded last week to HOLD from SELL. Another firm I follow upgraded last week from PERFORM to STRONG BUY.

I don’t see what they based it on. I typically don’t trust Zacks opinions very much, but the other one I do (that maybe I shouldn’t name- if you have Fidelity you can review it through their research portal).

1 Like

Wix has been a disappointment going from 82 or so in April down to 60 now.

Not a top performer over the last 10 months.

Time to put that $ elsewhere?

Anyone still holding?

Move into something that’s moving?

Any ideas?

It looks like WIX is simply consolidating at this time before further gains. There hasn’t been any high volume for a couple months since a pullback in November. Annual revenue growth has been 40% plus for several years and this is projected to continue with some acceleration in the next year. Cash flow, while still negative, is improving and it’s projected to have positive earnings in the next year. Despite exceptional growth, it’s only trading at less than 7 times 2017 revenue estimates.

To me, the short term pullback looks like a good buy point for a longer term investor. So I actually just added to my position.

Dave

5 Likes

Wow, the bullish sentiment is off the charts!

It looks like WIX is simply consolidating at this time before further gains. There hasn’t been any high volume for a couple months since a pullback in November. Annual revenue growth has been 40% plus for several years and this is projected to continue with some acceleration in the next year. Cash flow, while still negative, is improving and it’s projected to have positive earnings in the next year. Despite exceptional growth, it’s only trading at less than 7 times 2017 revenue estimates.

  • Every pull back is just a pause before moving higher
  • Trading at “less than 7 times revenue” as an indication of value
  • Cashflow negative is nothing to worry about

tecmo

7 Likes

Wow, the bullish sentiment is off the charts!

Not exactly. WIX is still only less than a 3% position in my portfolio.

* Cashflow negative is nothing to worry about

Cash flow continues to move in the right direction. There is always plenty to worry about, plenty of unknowns. Again, that’s why WIX is only a limited position in a diversified portfolio.

* Trading at “less than 7 times revenue” as an indication of value

Let’s look at a comparison. AAPL, which seems reasonably valued by most measures including a PE in the teens, is trading at a price to revenue multiple about half that of WIX (based on 2018 estimates). With current growth and no change in price, WIX’s price to sales multiple might be less than AAPL’s in about 2 years. And its growth expectations would continue to remain more robust.

So yes, it is an indication of value for this growth stock.

I own AAPL too, by the way.

* Every pull back is just a pause before moving higher

No. But when the stock pulls back despite continued strong fundamentals, it’s usually a time to add to a position.

dave

3 Likes

For what it’s worth I used Wix this month to create a website for a non-profit I am on the board of.

I had options to use, but Wix was nice. I have a degree in information technology and work in IT security (not website design) and know my limitations.

Wix offered me savings overall because of the time it took (less than 4 hours) to build the site, buy domains, integrate into Google Suites, start SEO, and publish it. I probably paid about $400 for starting it, and will have about $160/year in reoccurring costs. I do not know the margin for Wix on it, but there is some. They weren’t really competitive for domain registration (about twice as much), but I used them anyways because of the cost of my time to do it elsewhere (moat). Plus I can use their admin console to manage it all versus multiple accounts (moat).

I did buy the premium services, and added a couple apps. I even paid for some pictures to use.

Not advocating as an investment, but I might get into it after further research to get my fees back :slight_smile:

Robert
just a user, no shares of Wix

10 Likes