Website builder Wix (WIX) announced the acquisition of a leading marketplace and dropshipping platform, Modalyst, to deepen its online presence.
With this acquisition, customers of Wix will be able to make their online stores available to an even larger marketplace with several suppliers, manufacturers, and wholesalers.
The growing popularity and demand for online shopping have made it imperative for merchants to manage and grow their e-commerce businesses. Wix noted that average order value and sales revenues witnessed 40% and 79% growth, respectively, within the first four months of stores adding dropshipping products. (See Wix’s stock analysis on TipRanks)
Arik Perez, head of Wix e-Commerce, said, “Connecting merchants directly to a full supplier hub allows them to expand their own product offering and helps new businesses establish themselves by connecting with vetted suppliers with access to private labels and dropshipping.”
On June 14, Needham analyst Bernie McTernan reiterated a Buy rating and a price target of $310 (10% upside potential).
“Accelerating trends in e-commerce was the most positive takeaway from our checks and increases our confidence in this revenue stream. On core business trends, the majority of feedback was positive, with developers seeing a strong flow of new business,” said McTernan after speaking to over 20 WIX developers.
The rest of the Street is optimistic about the stock with a Strong Buy consensus rating based on 15 Buys and 2 Holds. The Wix average analyst price target of $322 implies 13.8% upside potential from current levels. Notably, shares have increased 26.2% over the past year.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Wix is currently Very Positive, as the cumulative change in holdings across all 7 hedge funds that were active in the last quarter was an increase of 101,800 shares.
Corsair Gaming Enters Meme Stocks List; Shares Rise
State Street Provides Upbeat Guidance for Q2 Revenues; Shares Gain 1.3%
Lazydays Holdings To Acquire Burlington RV Superstore; Shares Gain 3.9%