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If You Invested $1000 in Wix.com a Decade Ago, This is How Much It'd Be Worth Now

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in Wix.com (WIX - Free Report) ten years ago? It may not have been easy to hold on to WIX for all that time, but if you did, how much would your investment be worth today?

Wix.com's Business In-Depth

With that in mind, let's take a look at Wix.com's main business drivers.

Headquartered in Tel Aviv, Israel and founded in 2006, Wix.com Ltd. is a cloud-based web development platform. The company's platform offers solutions that enable businesses, organizations, professionals and individuals to develop customized websites and application platforms and grow their online presence.

In 2023, the company reported revenues of $1.56 billion, up 13% year over year. Growth in the number of registered users and premium subscriptions are key revenue drivers. The company’s core products and services include Wix Editor, Velo by Wix, Wix Logo Maker, Wix Studio and Wix Stores.

Wix Editor offers ready templates and drag-and-drop editor tool to facilitate Website editing to make web stores look professional without any design experience.

Velo by Wix is an open development platform for creating innovative web applications.

WIX Studio allows users to leverage latest AI technology and develop advanced websites at scale. Moreover, with Wix Logo Maker users can generate a logo by utilizing AI technology.

Wix Stores is the company’s e-commerce platform that offers merchants professional tools and services to create, design, manage and expand their e-commerce business.

Registered users as of Jun 30, 2024, were 273 million.

For increased transparency, beginning the fourth quarter of 2019, Wix reported revenues, collections and cost of revenues under two segments: Creative Subscriptions and Business Solutions. Creative Subscriptions and Business Solutions contributed 71.6% and 28.4%, respectively, to total secondt-quarter 2024 revenues of $435.7 million.

The company also started providing Annualized Recurring Revenue (ARR) as the primary KPI for growth of its Creative Subscriptions segment. As of Jun 30, 2024, Creative Subscriptions ARR was $1.28 billion.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Wix.com ten years ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in August 2014 would be worth $9,845.56, or a gain of 884.56%, as of August 23, 2024, according to our calculations. This return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 180.16% and gold's return of 86.66% over the same time frame.

Analysts are anticipating more upside for WIX. Wix’s second-quarter performance gained from higher adoption of the product portfolio, especially various AI products and WIX Studio. The addition of new features to Wix Studio is driving its uptake. Management highlighted that the number of Studio accounts and rate of new Partners joining the Wix platform through Studio continues to top expectations. Increasing momentum in the Partners’ business due to the onboarding of new agencies and freelancers bodes well, along with the expansion of the commerce platform. Management raised the outlook for bookings, revenues and free cash flow for 2024 due to a strong second quarter. Revenues are now expected to be in the range of $1,747-$1,761 million compared with $1,738 million to $1,761 million guided earlier. Volatile forex movement, stiff competition and rising accumulated deficit remain concerns. The stock has jumped 6.23% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2024; the consensus estimate has moved up as well.


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