WIX - Wix: Increasing Price Target As Partners Business And AI Should Continue To Drive Growth
2024-03-29 02:01:07 ET
Summary
- Wix's Q4 revenue and earnings exceeded expectations, driven by growth in its Partners business and innovation in AI offerings.
- The company's strategic initiatives, including Wix Studio and AI capabilities, should drive superior user experience and a higher conversion rate, leading to greater monetization on its platform.
- Despite risks from uncertain macroeconomic conditions and competition, Wix is projected to continue growing revenue and improve operating margins, making it a buy with a 40% upside potential.
Introduction & Investment Thesis
I initiated a Buy rating on Wix ( WIX ) on February 16. My bull thesis was predicated on my belief that the company continues to drive strategic growth in its Partners business by launching Wix Studio, as well as rapidly innovating on its AI product offerings while expanding profitability. Since then, the company has released its Q4 FY23 earnings report , where revenue and earnings exceeded expectations....
Wix: Increasing Price Target As Partners Business And AI Should Continue To Drive Growth