Wix’s Alibaba Deal: A Desperate Attempt to Revive a Fading Empire?
Wix.com’s recent partnership with Alibaba.com is being touted as a game-changer for the company, but is it just a desperate attempt to revive a fading empire? On the surface, the deal seems to be a strategic move to expand Wix’s reach and services, but dig deeper and you’ll find a company struggling to stay relevant in a rapidly changing market.
The Numbers Don’t Lie
Wix’s current price of $149.1 USD is a far cry from its 52-week high of $247.11 USD, reached on January 27, 2025. In fact, it’s a whopping 39.6% below that mark. But here’s the thing: it’s not all doom and gloom. The company’s price is 8.3% above its 52-week low of $137.94 USD, achieved on August 4, 2024. This moderate price recovery is a welcome sign, but it’s not enough to mask the underlying issues.
A Company in Crisis
Wix’s struggles are well-documented. The company has been facing increased competition from rival website builders, and its stock price has taken a beating as a result. The Alibaba deal is seen as a way to inject some much-needed life into the company, but it’s unclear whether it will be enough to turn things around. Here are just a few reasons why:
- Wix’s revenue growth has been stagnant in recent quarters
- The company’s user base has been declining
- Wix’s stock price has been volatile, with a 52-week range of $137.94 to $247.11 USD
The Verdict
Only time will tell if Wix’s partnership with Alibaba.com will be the catalyst for growth the company so desperately needs. But one thing is certain: the company’s struggles are far from over. As investors, we need to be cautious and keep a close eye on Wix’s performance in the coming months. Will the Alibaba deal be enough to revive Wix’s fortunes, or will it be just another failed attempt to stay relevant in a rapidly changing market?