What To Expect From Wix Stock After Mixed Earnings: A Big 3 Years Ahead

Aug. 25, 2022 8:30 AM ETWix.com Ltd. (WIX) StockWIX5 Comments

Summary

  • Wix has crashed 80% from all-time highs.
  • Revenue growth has decelerated rapidly in 2022 which in turn led to extreme multiple compression.
  • Management has guided for a robust recovery in growth rates over the next several years.
  • The company has a net cash balance sheet and is operating around free cash flow break even.
  • I can see the stock tripling over the next 3 years.
  • Looking for a portfolio of ideas like this one? Members of Best Of Breed get exclusive access to our model portfolio. Learn More »
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Wix.com (NASDAQ:WIX) is a casualty of the tech crash though the stock has bounced materially off its lows. This company arguably has a clear-cut thesis, being the backbones of web development, but the steep deceleration in growth rates has not provided support

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This article was written by

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Julian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of WIX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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