This Fund Just Made a $100 Million Bet on Wix as Fundamentals Improve After Steep Stock Slide

San Francisco-based investment firm No Street GP LP disclosed a new position in Wix.com valued at approximately $97.7 million in an SEC filing released on Friday.

What Happened

According to a filing with the U.S. Securities and Exchange Commission released Friday, No Street GP LP established an initial position in Wix.com Ltd. (NASDAQ:WIX) during the third quarter, acquiring 550,000 shares valued at $97.7 million as of September 30. This new position accounted for 6.4% of the fund’s reported U.S. equity holdings for the quarter.

What Else to Know

Top five holdings after the filing:

• NASDAQ:APP: $147.3 million (9.8% of AUM)
• NYSE:CVNA: $111.5 million (7.4% of AUM)
• NYSE:UBER: $107.8 million (7.2% of AUM)
• NASDAQ:WIX: $97.7 million (6.5% of AUM)
• NASDAQ:COOP: $94.9 million (6.3% of AUM)

As of Friday, shares of Wix.com were priced at $125.29, down 32% over the prior year and well underperforming the S&P 500's nearly 15% gain in the same period.

Company Overview

Company Snapshot

Wix.com Ltd. is a leading provider of cloud-based website development and business management solutions. The company leverages a scalable subscription model and diversified product suite to capture recurring revenue and support digital transformation for businesses of all sizes. Its competitive edge lies in its user-friendly platform, breadth of integrated services, and global reach across multiple customer segments.

Foolish Take

It's certainly interesting that No Street decided to load up on a stock that has shed more than 60% since its 2021 highs. The firm is no stranger to high-volatility compounders (with top holdings like AppLovin, Carvana, and Uber)—so adding Wix as a top-five position suggests confidence that the worst of the reset is behind the company.

That view is supported by Wix’s latest quarterly results. Second-quarter revenue rose 12% to $489.9 million, driven by accelerating new-cohort bookings, which grew 14% year over year and exited July above 20%. Free cash flow reached $147.7 million, while the company executed $100 million in share repurchases at an average price of $154.69. The acquisition of Base44 also expands Wix’s reach into application development—an area management expects could reach $40 million to $50 million in ARR by year-end.

For No Street, these dynamics may offer a rare blend: a high-margin SaaS model regaining momentum plus a stock still trading well below historical peaks.

For long-term investors, Wix is rebuilding from a position of strength—improving cohorts, durable cash flow, and a larger addressable market. Volatility will very likely remain, but if current trends hold, today’s valuation could underestimate the next phase of growth.

Glossary

13F: A quarterly report filed by institutional investment managers disclosing their U.S. equity holdings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Stake: The amount of ownership or investment a fund holds in a particular company.
Quarterly average price: The average market price of a security over a specific quarter.
Position: The amount of a particular asset or security held by an investor or fund.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Initial position: The first time an investor or fund acquires shares in a specific company.
Cloud-based platform: Software and services delivered over the internet, rather than installed locally on computers.
Subscription model: A business model where customers pay recurring fees to access products or services.
Vertical-specific applications: Software tools tailored to the needs of a particular industry or business sector.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies and Wix.com. The Motley Fool has a disclosure policy.