Wix.com (WIX) Announces SpeedETab Buyout at Undisclosed Terms
Wix.com WIX recently announced the buyout of SpeedETab for an undisclosed amount. The company offers end-to-end online and mobile ordering solutions for the restaurants.
With the buyout of SpeedETab, Wix intends to bolster functionalities of its Wix Restaurants solution. Post the acquisition, all SpeedETab employees will become part of Wix.
The acquisition is expected to boost demand for its Wix Restaurants’ solution and instil investors’ optimism in the stock. Notably, shares of Wix increased 143.7% in the past year compared with the industry’s rally of 53%.
Wix.com Ltd. Price and Consensus
Wix.com Ltd. price-consensus-chart | Wix.com Ltd. Quote
SpeedETab to Bolster Wix Restaurants
Wix Restaurants is a comprehensive offering for restauranteurs to help them build online and mobile presence including creating of robust online ordering and reservation capabilities as well as agile payment processing systems.
It also enables restaurants to take orders 24 hours for everyday of the week. Wix Restaurants offerings also comprise marketing tools that are aimed at helping restaurants promote their business.
The latest acquisition will facilitate Wix Restaurants to integrate with several well-known point of sale (POS) systems. This will enable restaurants to manage orders from various channels like online, and offline as well as aid in linking up with various delivery partners and marketplace channels.
Increased proliferation of smartphones and internet along with busy lifestyles and development of user-friendly applications are driving the demand for online food delivery market, per an Expert Market Research report. The report added that the market is anticipated witness a CAGR of 12% between 2021 and 2026 to reach $169.4 billion by 2026.
The coronavirus crisis also fueled demand for online food ordering as the world grapples with shelter-in-place guidelines.
Consequently, restaurants are working on building stronger online and mobile presence to gain a share of this lucrative market. This in turn bodes well for Wix’s restaurant solutions’ platform.
According to the press release, Wix noted that in the past two years, the company’s monthly new sign-ups witnessed massive growth “from hundreds to tens of thousands”. Wix also added that there was a 143% surge in number of restaurants selling online, while number of online orders surged 378% over the past two years.
Recently, Wix disclosed that in 2020, the company added 31 million new users taking its global registered user count to over 200 million.
Headwinds Persist
Nonetheless, Wix.com, which carries a Zacks Rank #4 (Sell), faces stiff competition in the e-commerce marketplace.
Also, the company’s limited footing in international markets along with sluggish spending among small-and-medium sized (SMB) businesses stemming from the coronavirus crisis continues to be a headwind. Higher investments in product development and infrastructure to counter competition in the e-commerce space is limiting margin expansion.
Stocks to Consider
Some better-ranked stocks in the broader technology sector are Shopify SHOP, Skyworks SWKS and MaxLinear MXL. All the stocks sport a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Shopify, Skyworks and MaxLinear is currently pegged at 32.5%, 19%, and 20%, respectively.
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