Alibaba.com and Wix form partnership to boost global trade

NEW YORK - Alibaba.com and Wix.com Ltd. (NASDAQ:WIX), a $9 billion market cap company with impressive revenue growth of ~13% in the last twelve months, announced Wednesday a strategic partnership designed to help entrepreneurs expand their global reach through integrated tools across both platforms.

The collaboration enables Wix merchants to become Global Gold Suppliers on Alibaba.com through a dedicated seller app available in the Wix Marketplace, while Alibaba.com sellers gain access to Wix’s platform to build direct-to-consumer and B2B storefronts. According to InvestingPro data, Wix maintains a strong gross profit margin of 68%, suggesting robust operational efficiency in its platform business.

The partnership focuses on three key initiatives: an Alibaba.com Seller App integration with Wix Marketplace, a curated sourcing marketplace for Wix merchants powered by Alibaba.com, and direct access to Wix’s platform for Alibaba.com sellers.

"Our partnership with Wix simplifies the complexities of international trade, offering small businesses streamlined solutions for sourcing, selling, and expanding their global reach," said Kuo Zhang, President of Alibaba.com.

Nir Zohar, President of Wix, stated: "Our collaboration with Alibaba.com opens powerful new opportunities for our users to tap into international wholesale markets, while also giving Alibaba.com merchants the ability to create stronger, more direct connections with their customers."

The partnership will be implemented in phases, with plans to introduce AI-powered product discovery, automated onboarding processes, and intelligent product-matching tools in the future.

According to the press release statement, the collaboration aims to facilitate trade across more than 200 countries and regions, connecting Wix’s website building capabilities with Alibaba.com’s global B2B marketplace. InvestingPro analysis indicates positive momentum for Wix, with net income expected to grow this year and analysts predicting continued profitability. For deeper insights into Wix’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering over 1,400 US stocks.

In other recent news, Wix.com has been active in expanding its capabilities through strategic acquisitions. The company recently acquired Base44, a platform that enhances its artificial intelligence offerings, following the earlier purchase of Hour One, which specializes in generative AI media creation. These acquisitions are part of Wix’s strategy to integrate AI technology across its platform, as noted by JMP Securities, which reiterated a Market Outperform rating with a $250 price target. Meanwhile, Barclays maintained an Overweight rating and a $240 price target, observing that Wix may be prioritizing smaller acquisitions to bolster its product capabilities.

Cantor Fitzgerald also reiterated its Overweight rating with a $200 price target, despite concerns about Wix’s fiscal year 2025 bookings guidance. The firm highlighted potential growth drivers, such as new product launches and stable transaction volumes, while acknowledging challenges like macroeconomic uncertainties. Baird upgraded Wix’s stock to an Outperform rating, citing compelling product offerings and reasonable expectations post-earnings, although it lowered the price target to $190. Additionally, Benchmark adjusted its price target to $230, maintaining a Buy rating, and expressed optimism about Wix’s long-term growth potential despite a slowdown in revenue growth. These developments reflect a mixed but generally positive sentiment among analysts regarding Wix’s future prospects.

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