Please ensure Javascript is enabled for purposes of website accessibility

Why Wix Stock Soared 70% in May

By Joe Tenebruso – Jun 8, 2020 at 7:21AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Businesses are migrating online, and increasingly, they're turning to Wix to do so.

What happened

Shares of (WIX 0.53%) rocketed 70% higher last month, according to data from S&P Global Market Intelligence, after the website building platform delivered strong first-quarter results. 

So what

Wix's revenue rose 24% year over year to $216 million. Its free cash flow, meanwhile, climbed 33% to $40 million.

Notably, Wix's registered user base grew 16% to 172 million, while the total number of its premium subscriptions increased by 12%, to 4.7 million.

"The current crisis has magnified the importance of having an online presence like never before, and we are very fortunate to offer a product that provides businesses, brands, and individuals an opportunity to build and grow despite the increasing hardships that they are facing," CEO Avishai Abrahami said in a press release.

A person is typing on a computer.

Wix helps business owners build their own websites. Image source: Getty Images.

Now what 

The coronavirus pandemic and corresponding stay-at-home directives have driven many businesses to establish an online presence. Wix, with its easy-to-use website-building tools, has been a major beneficiary of this trend. Its growth, in turn, is accelerating; management expects its revenue and free cash flow to rise by as much as 26% and 40%, respectively, in the second quarter.

"Entrepreneurs and business owners will do everything in their power to adapt and keep their business going," President and Chief Operating Officer Nir Zohar said. "It is gratifying for us to offer them a platform on which they can expand their business, or even completely reinvent themselves online, so they can continue running their businesses and supporting their families."

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned Stock Quote
$72.56 (0.53%) $0.39

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.