Last week, Wix.com Ltd. (NASDAQ:WIX) announced that it had received approval from the court for its proposal to increase the maximum amount of its share repurchase plan from $80 million to $100 million. The right to repurchase also got an extension to June 30, 2019, following the expiry of the previous schedule on Dec. 31, 2018.
The company’s shares have gained 15% since Jan. 3 with investors moving in to act on the good news released a day before, via an SEC filing. This week analysts from Wedbush issued an investor note raising their price target to $130.00, which based on the current share price of about $100 would imply a 30% upside. Citigroup also started coverage with an outperform rating.
However, that’s not the real force behind Wix’s compelling outlook for the near-term future. First, Wix is technically the only one of its kind that is publicly listed in the U.S. Shopify Inc. (NYSE:SHOP) is a close comparison but not like-for-like because of the diversity Wix offers to developers and online store owners.
Therefore, given the projected growth of the e-commerce space, Wix’s disruptive website building technology that has seen some rivals try to adapt to, and the general expectation that the U.S. stock market is due a rebound in 2019, all these make the company an exciting prospect to growth investors this year.
Wix has a disruptive website development tech, but rivals are right on its heels
This cloud-based web development platform from Israel has revolutionized the e-commerce marketplace with its drag-and-drop website creation tools. It allows businesses to take their brands and products online with ease and this concept is expected to drive the growth of the company exponentially.
The developed world has a majority of businesses already well represented in various online platforms. However,