WIX: 3 Internet Stocks Investors Are Eyeing to Buy |  StockNews.com

WIX: 3 Internet Stocks Investors Are Eyeing to Buy | StockNews.com

The widespread adoption of the Internet has fueled the rise of Internet service companies, which benefit from the increase in online activities such as shopping, payments and remote working. Additionally, the digitization drive of pandemics has further driven demand, leading these companies to broaden their offerings and assist businesses in improving their operations.

Given the rosy outlook for the industry, I believe robust Internet stocks Wix.com Ltd. (WIX), Perion Network Ltd. (PERI), and 88, Inc. (EGHT) are worth buying. These stocks are trading above their 50-day and 200-day moving averages, indicating an upward trend.

5G technology has become a significant game changer in the global telecommunications industry and is expected to transform nearly every other industry. Furthermore, 5G-enabled technologies are helping to support the development of smart manufacturing and smart factories by offering compelling benefits to manufacturers.

Thus, the global private 5G market is projected to grow at a CAGR of 49.7% to reach $41.80 billion by 2030.

Furthermore, the growing adoption of wireless technology, such as Bluetooth, Wi-Fi, and GPS, is also enlarging the growth scope of the wireless connectivity market. Furthermore, the growth is likely to be driven by the growing demand for affordable smart wireless sensors.

According to a report by ReportLinker, the global wireless Internet services market is estimated to reach USD 921.97 billion by 2027, with a CAGR growth of 7%.

Let’s take a detailed look at the actions mentioned above:

Wix.com Ltd. (WIX extension)

Headquartered in Tel Aviv, Israel, WIX develops and markets a cloud-based platform for building websites and web applications. Its offerings include a visual development platform for building custom websites. The company also provides specific vertical applications and complementary services such as App Market and Owner App for website management.

WIX’s forward P/S multiple of 3.10 is 61.5% lower than its five-year average of 8.03. Its EV/Sales forward of 2.98x is 60.7% lower than its five-year average of 7.58.

On July 17, WIX announced its plans to launch AI Site Generator, along with a suite of AI-powered features, many of which are already available to users. These offerings aim to provide Wix users with AI technology that significantly simplifies the entire website creation, design and management process, offering more automated tools to get their businesses up and running and growing easier than ever before.

On May 24, 2023, WIX announced it had completed a $300 million share repurchase program. The company repurchased approximately 3.6 million shares of WIX common stock outstanding, representing approximately 6 percent of total shares outstanding, at an approximate weighted average price per share of $82.48.

During the first quarter ended March 31, 2023, WIX’s total revenues increased 9.5% year over year to $374.08 million. Its non-GAAP operating income was $48.52 million, compared with a non-GAAP operating loss of $50.99 million in the prior year quarter.

In addition, its non-GAAP net income was $51.10 million, compared to a non-GAAP net loss of $41.39 million in the prior year quarter. In addition, its non-GAAP EPS was $0.91, compared with a non-GAAP loss per share of $0.72 in the year-ago quarter.

Street expects WIX revenue to increase 10.8% year over year to $382.44 million for the unannounced quarter ended June 30, 2023. It topped consensus EPS estimates in each of the trailing four quarters, which is remarkable.

Over the past year, the stock has gained 24.5% to close the last trading session at $83.62. It is also trading above its 50-day and 200-day moving averages of $78.96 and $83.45, indicating an upward trend.

WIX’s POWR ratings reflect a strong outlook. The stock has an overall rating of B, which translates into a Buy in our proprietary rating system. POWR ratings are calculated considering 118 different factors, each optimally weighted.

The title has a B grade for growth. It ranks sixth in the Internet services sector with 29 shares.

Click here to see additional WIX ratings (Value, Momentum, Stability, and Sentiment).

Perion Network Ltd. (PERIOD)

Headquartered in Holon, Israel, PERI provides a comprehensive digital advertising ecosystem. It enables brands, agencies and publishers to effectively identify and engage customers across various channels. The company operates in three key areas of digital advertising: ad research; social media; and displays, video or CTV.

PERI’s EV/EBITDA and EV/EBIT multiples of 7.25 and 9.47 are 13.4% and 39.9% lower than the industry averages of 8.37 and 15.77.

PERI’s revenues increased 15.8% year over year to $145.15 million for the fiscal first quarter ended March 31, 2023. Adjusted EBITDA increased 38% from the prior year quarter to $31.27 million. In addition, the company’s non-GAAP net income and non-GAAP EPS increased 44.2% and 36.4% over the year-ago quarter to $29.90 million and $0.60, respectively.

PERI’s revenue is expected to increase 20% year over year to $176 million in the fiscal second quarter ended June 2023. The company’s EPS for the same quarter is expected to grow 8.8% year over year to $0.45. Additionally, the company topped consensus revenue and EPS estimates in all four trailing quarters.

The stock has gained 66.6% over the past year, closing the last trading session at $33.91. It is trading above the 50-day and 200-day moving averages of $32.84 and $30.96, indicating an upward trend.

PERI’s positive outlook is reflected in its POWR Ratings. The title has an overall rating of B, which translates to Buy in our proprietary rating system.

PERI has a B grade for Value, Quality and Feeling. It ranks fourth in the same sector.

To access PERI’s additional assessments for growth, momentum and stability, click here.

88, Inc. (EGHT)

EGHT provides enterprise-class voice, video, chat, contact center, and Application Programmable Interface (API) Software-as-a-Service solutions for small and medium businesses, medium and large enterprises, government agencies, and other organizations worldwide.

EGHT EV/Sales forward of 1.23x is 58.9% lower than the industry average of 2.99x. Its forward P/S multiple of 0.66 is 77.3% lower than the industry average of 2.93.

On July 20, EGHT announced that Kubota Tractor Corporation had implemented its 88 XCaaS (eXperience Communications as a Service) cloud contact center and unified communications platform for greater flexibility and ease of use across the entire organization.

On July 13, EGHT announced the 88 Technology Partner Ecosystem, a new program that enables customer-focused organizations to enhance the customer experience by deeply integrating cutting-edge technologies, including leading artificial intelligence (AI) capabilities, into the 88 platform with persistent data to improve business intelligence, insights and analytics.

The 88 Technology Partner Ecosystem transforms customer experience and engagement by democratizing next-generation native integrations seamlessly for organizations of all sizes without requiring complex custom development or exorbitant overhead costs that have traditionally been feasible only for the largest enterprises.

During the fiscal fourth quarter ended March 31, 2023, EGHT’s total revenue increased 2% year over year to $184.53 million. Its total operating expenses decreased 18.4% year over year to $181 million. The company’s non-GAAP net income was $12.67 million or $0.11 per share, an increase of 124.6% and 120% from the year-ago quarter.

EGHT’s EPS is expected to increase 39% from the year-ago quarter to $0.13 in the to-be-announced quarter ending June 2023. In addition, analysts expect EGHT’s EPS and revenue to increase 135.1% and 1.4% year over year to $0.12 million and $189.91 million in the current quarter ending September 2023.

The stock is up 37.3% over the past three months, closing the latest trading session at $4.35. EGHT is also trading above its 50-day and 200-day moving averages of $3.96 and $4.22, indicating an upward trend.

Unsurprisingly, EGHT has an overall rating of B, which equates to a buy in our proprietary rating system.

The stock also has an A grade for Value and a B grade for Growth. It is ranked #5 in the same sector.

In addition to the above POWR ratings, additional EGHT ratings for Momentum, Stability, Sentiment, and Quality can also be accessed here.

What to do next?

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WIX shares traded at $83.10 a share on Monday morning, down $0.52 or -0.62%. Year-to-date, WIX has gained 8.16%, compared with a 19.61% increase in the benchmark S&P 500 over the same period.

About the author: Kritika Sarmah

Her interest in risky instruments and passion for writing made Kritika a financial analyst and journalist. She holds a bachelor’s degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities. Moreover…

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