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Sunday, August 14, 2022

Wix share price keeps rising

Doubling Down On Wix

Since I first tipped Wix back in September 2016 the stock has steadily risen from its then tipped price of $44.39 to $143.36 as of 12/05/2019.

The shares are up over 50% in the year to date and 700% in the last five years. 

The reason for the rise is that Wix paid attention to what the experts were saying - without decent SEO tools you can build the best-looking website in the world but if it doesn't get found then the investment has been wasted. because without being found in search engine results, websites are at the mercy of paid advertising which in most new business cases and particularly for the small business owner is a prohibitive expense.

The improvement in Wix SEO features is just part of a suite of upgrades that have seen Wix begin to be taken seriously by the website design community and it is quickly becoming a serious rival to open source solutions like Wordpress and Joomla.

The impressive growth and innovation efforts show no sign of slowing down and I predict that Wix will continue to make massive inroads into the website designer community once people realise how easy it is to produce a stunning website with Wix compared to Wordpress.

Not only does Wix excel in its drag and drop feature set but also the eCommerce integration is exceptionally well thought out and the inbuilt booking system is far superior to anything Wordpress plugins can offer.

Wix will publish first-quarter results on May 16th and is targeting sales growth of around 25% to reach revenue of just over $170 million. Whilst that growth is a deceleration on previous years growth of 40% the business is still growing at a rapid rate and once they show evidence that users are sticking with the platform and taking out more services I expect the share price to quickly jump ahead.