Cantor Fitzgerald’s Top Internet Stocks: Best Stocks To Buy According To $13.2 Billion Firm

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3. Wix.com Ltd. (NASDAQ:WIX)

Number of Hedge Fund Holders In Q2 2024: 42

Share Price Target Upside: 30%

Cantor’s Rating: Overweight

Cantor’s Share Price Target: $200

Wix.com Ltd. (NASDAQ:WIX) is a pure play internet company that directly works with businesses to allow them to leverage the internet for their various needs. It is a software as a service (SaaS) firm, due to its web development, application management, payment platform, and other services. This means that Wix.com Ltd. (NASDAQ:WIX) has to focus on growth and margins to drive its valuations. The firm’s growth is indicated by its bookings, and Wix.com Ltd. (NASDAQ:WIX) is also targeting the growing number of businesses that plan to come online through the internet. This product is the Wix Studio, which provides businesses with a one stop shop to set up their websites. Data shows that 71% of businesses had a website in 2023, with 28% of all business activity being conducted online to provide Wix.com Ltd. (NASDAQ:WIX) with significant tailwinds. Cantor’s valuation is based on a 6% FCF yield for Wix, and the firm is impressed by the firm’s product improvements and its Partner business.

Wix.com Ltd. (NASDAQ:WIX)’s management commented on Wix Studio’s adoption during the Q2 2024 earnings call:

“The number of Studio accounts and rate of new partners joining the Wix platform through Studio continue to outperform expectations. We also saw an acceleration in the pace of Studio subscription purchases. This, along with strong retention of existing subscriptions and the ramping of partners purchasing their second, third, and fourth Studio packages, drove quarter-over-quarter Studio bookings growth of 20%. Our platform is increasingly resonating with the professional community, as we continue to deliver best-in-class innovations and grow our partner ecosystem. Second, we continue to build up our suite of AI capabilities as a result of the numerous AI initiatives and work streams across weeks. Last quarter, we introduced our plan to embed AI assistance across our platform and products.”

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