1 Reason to Sell Wix.com, and 3 Reasons to Buy
Shares of website management software outfit Wix.com (NASDAQ: WIX) continue to get blasted this year. After another downturn, share prices are down 36% over the past 12-month stretch and 50% off of all-time highs. But this has been a fantastic growth story since the company made its public debut in late 2013.
Some uncertainty could lead some investors to conclude it's time to sell, but there are still many more reasons to buy after this really steep dip.
Wix's profitability has taken a few hits this year and that has some investors worried. Wix stock has been crushed by a combination of rising interest rates (which lower the long-term value of profits) and the company's lower bottom line this year as it spends to promote more growth. Full-year 2021 expected free cash flow has been forecast to be just $35 million to $40 million, down from $129 million in 2020. New headquarters construction, a handful of small acquisitions, and the development of new software capabilities (like an easy-to-use app builder to complement its web development suite of services) have all weighed on the profitability outlook.
Source Fool.com
