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Increased internet usage and increased digitalization have strengthened the internet services industry. With this background in mind, let’s analyze whether Internet services stocks Global-E Online (GLBE) and Wix.com (WIX) are worth buying now. read….
The Internet services industry is experiencing significant growth due to the increasing need for fast and effective connectivity. Against this background, Internet service company Wix.com Ltd. (wicks) Given its solid profitability, it may be a smart addition to your portfolio. Conversely, Global-E Online Ltd. (GLBE), given the weak fundamentals.
Before we dig deeper into the fundamentals of these two stocks, let’s take a quick look at the state of the industry.
A recent analysis revealed that 5.35 billion people will be using the internet in 2024. 66.2% of world population. Internet users increased by 1.8% over the past year, with approximately 97 million new users using the online platform for the first time. This increase in internet adoption bodes well for the industry.
Consumers are expected to buy more products Use social media directly In 2024, it will be preferred over third-party and branded websites. The trend of online shopping is growing; Internet and smartphone usage It has significantly boosted the Internet services market.
moreover, global digital revolutionis driven by the introduction of wireless technology, which promises to increase productivity and reduce costs, driving significant growth in Internet services.
In addition, growth trends such as 5G, blockchain, and AR, AI, cloud services, etc. is impacting the Internet services market and is expected to see continued growth in the coming years.This predicts the global Internet services market Reaching $733.79 billionIt will register a CAGR of 4.4% by 2031.
With these positive trends in mind, let’s dig into the basics of the two. Internet – Services Select stocks starting with the weakest from an investment perspective.
Stock #2: Global-E Online Ltd. (GLBE)
Headquartered in Petah Tikva, Israel, GLBE provides a platform that enables and accelerates direct-to-consumer cross-border e-commerce in Israel, the UK, the US, and internationally.
GLBE last 12 months asset turnover rate 0.48x is 51.7% lower than the industry average of 1x. Similarly, cash per share for the trailing twelve months was $1.21, which is 53.5% lower than the industry average of $2.60.
GLBE’s revenue and non-GAAP gross profit for the fourth quarter of its fiscal year ended December 31, 2023 were $185.4 million and $79.12 million, respectively. In addition, adjusted EBITDA was $35.18 million.
Net loss attributable to common stockholders and basic and adjusted net loss per share attributable to common stockholders for the quarter were $22.1 million and $0.13, respectively. As of December 31, 2023, GLBE’s cumulative deficit was $456.85 million, an increase of 41.4% from the previous year.
TheStreet expects GLBE’s revenue and EPS to be $141.69 million and $0.10, respectively, for the fiscal first quarter ending March 2024.
Shares have fallen 16.8% over the past month, closing at $34.11. In the past three months, it has decreased by 14.4%.
GLBE’s dark fundamentals are power rating. This stock has an overall rating of D, which equates to a Sell according to our proprietary rating system. POWR ratings are calculated by considering 118 different factors, with each factor weighted to the best degree.
The stock has an F grade for value and a D for stability. Within D rating Internet – Services It ranks 22nd out of 28 stocks in the industry.
To see additional POWR ratings for GLBE’s Growth, Momentum, Sentiment, and Quality, visit click here.
Inventory #1: Wix.com Ltd. (wicks)
Headquartered in Tel Aviv, Israel, WIX develops and markets cloud-based platforms for creating websites and web applications in North America, Europe, Latin America, Asia, and internationally.
Recently, WIX announced amendments to the Israeli Company Regulations. This eliminates the need to obtain mandatory Israeli court approval for a company’s stock buybacks, which would normally require approval. The Relief Rule streamlines the regulatory approvals required for share repurchases and allows WIX to quickly begin carrying out share repurchase activities.
As previously announced, WIX is in the process of obtaining the necessary approvals under Israeli law for an additional $225 million share repurchase under the new relief rules, subject to board approval. Masu.
On March 6, WIX announced that three new providers have been introduced: Airpay, Easebuzz, and Nimbbl, enhancing WIX’s offering to merchants in India and providing more choice for users. Additionally, two other providers, Razorpay and Cashfree, have regained approval from the Reserve Bank of India (RBI) and are once again able to register new users.
These providers offer a wide range of features to suit diverse business models and allow merchants to seamlessly integrate payment solutions into their WIX websites.
WIX’s trailing twelve month asset turnover ratio was 0.88x, which is 44.4% higher than the industry average of 0.61x, and its trailing twelve month cash per share was $10.64, which was 411.4% higher than the industry average of $2.08. is.
For the fourth quarter of its fiscal year ended December 31, 2023, WIX’s revenue and non-GAAP gross profit were $403.77 million and $282.01 million, an increase of 13.7% and 21.8%, respectively, from the prior year period. . Additionally, free cash flow increased 108.3% year over year to $80.39 million.
Non-GAAP net income and non-GAAP net income per share for the quarter were $74.04 million and $1.22, an increase of 107.8% and 100%, respectively, from the prior-year period.
Street expects WIX’s revenue and EPS for the fiscal first quarter ending March 2024 to be $417.7 million and $1.06, up 11.7% and 16.1% year over year, respectively. . The company has exceeded consensus revenue and EPS estimates in each of his four subsequent quarters, which is great.
Shares have increased 62.9% over the past nine months and last traded at $138.52. It has risen 55.2% over the past year.
WIX’s solid outlook is reflected in its POWR Rating. The stock has an overall rating of B, which equates to a “buy” according to our proprietary rating system.
WIX has an A grade for growth and a B grade for sentiment. Ranked 4th in the industry.
click here Additional POWR ratings (Value, Momentum, Stability, Quality) for WIX can be found here.
What’s next?
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WIX stock was unchanged in pre-market trading on Tuesday. Year-to-date, WIX has increased his 12.60%. In comparison, the benchmark S&P 500 index rose 7.90% in the same period.
About the author: Neha Panjwani
Neha has had a deep interest in finance since her school days, a passion that led her to a career as an investment analyst after completing a bachelor’s degree in commerce. Neha is currently enrolled in the CFA program and is dedicated to further deepening her understanding of the fundamentals of investing. Neha’s main objective is to help individual investors identify the best investment opportunities by passionately evaluating the key aspects of financial products, primarily focusing on stocks and her ETFs. is. Her focus is on empowering individuals to make informed and strategic investment decisions in a dynamic financial world.
post Are Wix.com (WIX) and Global-E Online (GLBE) worth buying now? It first appeared stocknews.com