Wix.com WIX shares rallied 5.3% in the last trading session to close at $236.36. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.6% gain over the past four weeks.
The increase in share price can be attributed to strong topline performance. Wix continues to focus on strategic investments in AI offerings, Studio and commerce solutions. WIX Studio, the company’s premium offering for agencies and professionals, accounted for 75% of new partner bookings in the third quarter of 2024, a notable increase from the previous quarter. The platform’s compelling features and efficiency have made it the foremost choice for larger projects.
Strong third-quarter performance led to a revised full-year revenue outlook of $1,757-$1,764 million, indicating 13% year-over-year growth from the earlier guidance of $1,747-$1,761 million. Bookings revised to $1,822-$1,832 million (14-15% year-over-year growth), up from prior guidance of $1,802-$1,822 million. Bookings growth is anticipated to accelerate to 17% year over year in the second half with growth exiting 2024 at 18%.
The continued evolution of AI and Studio offerings is expected to drive revenue growth. AI-powered solutions will not only enhance user experience but also create opportunities for direct monetization, providing a significant tailwind for 2025 and beyond.
This cloud-based web development company is expected to post quarterly earnings of $1.61 per share in its upcoming report, which represents a year-over-year change of +32%. Revenues are expected to be $461.34 million, up 14.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Wix.com, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on WIX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Wix.com is part of the Zacks Computers - IT Services industry. ServiceNow NOW, another stock in the same industry, closed the last trading session 1.5% higher at $1,031.29. NOW has returned -10.1% in the past month.
ServiceNow's consensus EPS estimate for the upcoming report has changed +0.7% over the past month to $3.60. Compared to the company's year-ago EPS, this represents a change of +15.8%. ServiceNow currently boasts a Zacks Rank of #1 (Strong Buy).
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