Should You Invest in Wix.com?

PHOTO CREDIT: Wix.com

OVERVIEW

Why You Should?

  1. Wix has seen a rising demand for its products long before this pandemic. Small and medium businesses have money to spend on innovating to get their products out to a wider audience. These businesses sold both at physical and digital storefronts which benefited both themselves as well as companies like Wix.com.
  2. Consumers from most parts of the world can use Wix.com’s products. Wix operates in countries in North America, Asia, Latin America, and many more countries. This reach will benefit the company in the long-term.
  3. The company has strong financials over the past couple of years. The company has seen rising revenues due to strong growth but has not turned a profit yet. The graph below clearly shows this. Because Wix.com has not shown Wall Street that it can be consistently profitable, it might mean that the stock might face volatility in pricing in the future. This does not make Wix.com a safe investment. In the financial year of 2019, the company reported revenues of around 761 million but posted a loss of around 86 million. The company reported less revenue in the financial year of 2018 when it posted revenues of around 604 million. However, it also reported fewer losses at around 37 million.
PHOTO CREDIT: Yahoo Finance

Why You Should Not?

  1. Wix.com has to deal with a weak economy in the years ahead. Small and medium businesses have been crushed by this pandemic and no longer have the cash to spend on products like Wix. This will negatively impact the company until the economy starts to improve again.

MY OPINION

--

--

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.