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Is This Growth Stock a Better Buy Than Shopify?

By Neil Rozenbaum - Apr 24, 2021 at 11:00AM

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Wix could be coming for Shopify's lunch.

In this video, I will be making the case that Wix (WIX 4.06%) is a better buy than Shopify and explain why Wix is much more than e-commerce. 

What is Wix?

Wix helps you set up your website, online store, blog -- basically your digital presence. The main competitors are not just e-commerce websites such as Shopify and Amazon but also social media channels such as Twitter, Instagram, and Facebook. Because let's face it, do you really need a website if you're an influencer or freelancer?

But if you're a small business or a business, the answer is yes.

Business and creative solutions

Wix users pay a subscription fee for access to creative solutions, the tools for creating and managing websites. This accounts for 79.2% of 2020 revenue.

Business solutions revenue comes from Wix's marketing and CRM app (Ascend), reselling G-Suite products, creating and managing Facebook ad campaigns, and Wix Payments. Wix Payments was launched in 2019 and has grown to more than $50M in revenues in 2020 (very small compared to Shopify).

Wix is not fully focused on e-commerce because that market is being won by Amazon and Shopify. Wix is focusing on everything else that goes digital. Not every online business is e-commerce.

*Stock prices used were the closing prices of April 23, 2021. The video was published on April 23, 2021.

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Stocks Mentioned

Wix.com Stock Quote
Wix.com
WIX
$68.21 (4.06%) $2.66
Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
META
$160.03 (-0.76%) $-1.22
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$109.56 (3.15%) $3.35
Twitter, Inc. Stock Quote
Twitter, Inc.
TWTR
$38.23 (2.25%) $0.84
Shopify Inc. Stock Quote
Shopify Inc.
SHOP
$31.41 (0.54%) $0.17

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

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