May 18, 2020 - Economy & Business

Website builder Wix sees coronavirus-driven stock boom

Dion Rabouin, author of Markets
Data: Investing.com; Chart: Axios Visuals

Website builder Wix saw its stock price jump by nearly 7% on Friday after reporting strong earnings, showing that the coronavirus pandemic is increasing demand for its products.

Why it matters: The earnings report shows you can add website building tools to the list of sectors that are seeing benefits from the virus and could indicate a new area of long-term growth.

What they're saying: "The current crisis has magnified the importance of having an online presence like never before," CEO Avishai Abrahami said in a statement.

  • He added that demand "boomed at the beginning of April" (after the quarter closed), with new registered users up 63% to a record 3.2 million during the month and total net premium subscription additions more than tripling.

By the numbers: The company’s stock has risen 65% year to date, outpacing the overall S&P 500's decline of 11.4% and the S&P tech sector's gains of 2%, according to Dow Jones.

  • Total revenue rose 24% year over year to $216 million, but Wix still reported a non-GAAP loss of 1 cent per share (beating Wall Street estimates of -2 cents per share).

What's next: Wix also offered rosy guidance for the second quarter, projecting revenue between $231 million-$233 million, ahead of Wall Street's forecast of $227.5 million, and expects growth in the second half of 2020 to be stronger than previously anticipated.

Go deeper

Updated 47 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 4 p.m. ET: 6,226,408 — Total deaths: 373,973 — Total recoveries — 2,672,161Map.
  2. U.S.: Total confirmed cases as of 4 p.m. ET: 1,799,747 — Total deaths: 104,702 — Total recoveries: 444,758 — Total tested: 16,936,891Map.
  3. Public health: Nearly 26,000 coronavirus deaths in nursing homes have been reported to federal health officials —Coronavirus looms over George Floyd protests across the country.
  4. Federal government: Trump lashes out at governors, calls for National Guard to "dominate" streets.
  5. World: Former FDA commissioner says "this is not the time" to cut ties with WHO.
  6. 🎧 Podcast: The virus didn't go away.

Increased armed presence planned for D.C. tonight

Demonstrators stand around a fire during a protest near the White House in response to the killing of George Floyd. Photo: Alex Wong/Getty Images

Government officials say plans are in place for a significantly heavier armed presence on the streets of Washington, D.C. tonight in response to the increasingly violent protests linked to the death of George Floyd.

What we're hearing: "Tonight you will see increased presence, both police...other agencies, and National Guard presence," a source familiar with the government's plans said.

Updated 47 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 4 p.m. ET: 6,226,408 — Total deaths: 373,973 — Total recoveries — 2,672,161Map.
  2. U.S.: Total confirmed cases as of 4 p.m. ET: 1,799,747 — Total deaths: 104,702 — Total recoveries: 444,758 — Total tested: 16,936,891Map.
  3. Public health: Nearly 26,000 coronavirus deaths in nursing homes have been reported to federal health officials —Coronavirus looms over George Floyd protests across the country.
  4. Federal government: Trump lashes out at governors, calls for National Guard to "dominate" streets.
  5. World: Former FDA commissioner says "this is not the time" to cut ties with WHO.
  6. 🎧 Podcast: The virus didn't go away.