Wix.com WIX shares saw a notable 3.2% increase in the last trading session, closing at $177.24. This uptick was driven by a significant trading volume that exceeded typical levels. Over the past month, the stock has gained a total of 7.7%.
Strong Performance Boosted by AI Adoption
Wix’s share price rise can be linked to its strong performance in revenue. The company has seen increasing adoption of its diverse product lineup, particularly its various artificial intelligence (AI) tools and WIX Studio, both of which are pivotal to its growth strategy. Wix is making a concerted effort to leverage generative AI, viewing it as a major potential driver for future business expansion.
New Features Driving Wix Studio Growth
The launch of new features in WIX Studio is encouraging more users to join. Management pointed out that the number of Studio accounts, along with the rate of new Partners engaging with the Wix platform, have consistently exceeded expectations.
Revised Financial Outlook Following Strong Q2
After a robust second quarter, Wix’s management has raised its outlook for 2024, anticipating stronger bookings, revenues, and free cash flow. Revenue is now projected to be between $1,747 million and $1,761 million, up from the previous guidance of $1,738 million to $1,761 million. Furthermore, total bookings are now expected to range from $1,802 million to $1,822 million, compared to the earlier forecast of $1,796 million to $1,826 million.
Upcoming Earnings Report and Growth Expectations
Wix.com is preparing to report quarterly earnings of $1.44 per share—an impressive year-over-year increase of 30.9%. The company is also expected to generate revenues of $443.27 million, which represents a 12.6% rise compared to the same quarter last year.
Monitoring Trends for Future Stability
While growth in earnings and revenue paints a positive picture, past research indicates that changes in earnings estimates significantly impact stock performance. For Wix.com, the consensus EPS estimate for the quarter has remained steady over the past month. This stability often suggests that stock prices might not continue to rise if there are no accompanying changes in earnings projections. Investors are advised to keep an eye on WIX to see if this recent surge translates into sustained momentum.
Current Stock Rank and Industry Comparison
Currently, Wix.com holds a Zacks Rank of #3 (Hold). In the same industry, CyberArk CYBR closed up 0.5% at $295.65 during the last trading session, reflecting a return of 9.7% over the past month. CyberArk’s consensus EPS estimate has also remained unchanged at $0.45, a 7.1% increase year over year, earning it a Zacks Rank of #1 (Strong Buy).
Expert Picks for Upcoming Market Opportunities
Investment experts have just released a list of 7 elite stocks from the broader Zacks Rank #1 Strong Buys, which they label as “Most Likely for Early Price Pops.” This list has historically outperformed the market by more than double since 1988, with an average annual gain of 23.7%. Interested investors should take note of these selected stocks.
Keep an eye on these strategic picks for potential investment opportunities >>
Want to stay informed with the latest recommendations from Zacks Investment Research? You can also download a free report on 5 Stocks Set to Double.
Wix.com Ltd. (WIX): Free Stock Analysis Report
CyberArk Software Ltd. (CYBR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
