In an act of financial defiance, New York-based Elwood Capital Partners added 17,710 shares of Wix.com Ltd. (WIX +0.69%) to its portfolio in the third quarter, boosting its stake by $3.57 million. This move, disclosed in an SEC filing, raises questions about the disconnect between market sentiment and corporate reality.
What Happened
A November 13 filing reveals Elwood Capital Partners LP increased its Wix.com position to 40,033 shares, valued at $7.11 million as of September 30. The purchase occurred against a backdrop of shareholder anxiety: Wix’s stock has fallen 53% over 12 months, lagging the S&P 500’s 15% gain.
What Else to Know
The firm now allocates 4.34% of its 13F assets to Wix. Its top holdings include Amazon, Microsoft, and other cash-flow engines, suggesting a focus on durable revenue streams over short-term volatility.
- NASDAQ:AMZN: $13.80 million (12.6% of AUM)
- NASDAQ:MSFT: $13.07 million (12.0% of AUM)
- NYSE:TSM: $12.57 million (11.5% of AUM)
- NYSE:UNH: $12.10 million (11.1% of AUM)
- NYSE:PLNT: $7.27 million (6.6% of AUM)
Company Overview
| Metric | Value |
|---|---|
| Price (as of Wednesday) | $105.43 |
| Market Capitalization | $5.87 billion |
| Revenue (TTM) | $1.93 billion |
| Net Income (TTM) | $138.90 million |
Company Snapshot
- Wix.com provides cloud-based tools for website creation, e-commerce, and business management. Key products include Wix Editor, Wix ADI, and Wix Payments.
- Revenue is driven by premium subscriptions and payment fees, using a freemium model to convert users.
- Targets individuals, small businesses, and enterprises globally, emphasizing accessibility and scalability.
Wix operates in a crowded digital space, yet maintains a subscription-driven model with 193 million registered users. Its tools aim to democratize online presence, though the stock price suggests skepticism.
Foolish Take
There is a quiet audacity in buying when others flee. Wix’s third-quarter results-$505 million in revenue, 14% growth, and $127 million in free cash flow-paint a picture of a company far from collapse. Excluding one-time costs, free cash flow would exceed $159 million. Creative Subscriptions ARR now stands at $1.46 billion, while Business Solutions revenue rose 18%. The AI-powered Base44 platform, projected to reach $100 million in ARR, hints at untapped potential.
Yet the stock remains shackled by pessimism. Elwood’s patience is telling: it holds Wix alongside Amazon and Microsoft, favoring long-term cash generators over quick wins. This is not a bet on a rebound, but a wager on fundamentals. As Orwell might note, truth often lags behind perception-but not forever. 🤔
Glossary
13F reportable assets: Investments in equities that institutional managers must disclose to the SEC.
Assets under management (AUM): Total value of client investments.
Quarter over quarter: Comparative analysis of consecutive quarters.
Freemium model: Free basic services with paid upgrades.
Premium subscriptions: Paid plans offering advanced features.
Value-added services: Additional offerings enhancing core products.
Payment processing fees: Charges for transaction handling.
Stake: Ownership interest in a company.
Top holdings: Largest investments in a portfolio.
TTM: Twelve months ending with the latest quarterly report.
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2025-12-26 00:03