Oil prices are falling on Monday after President Donald Trump threatened to knock out Iran’s power plants if it doesn’t reopen the Strait of Hormuz by Tuesday.
Oil prices are falling on Monday after President Donald Trump threatened to knock out Iran’s power plants if it doesn’t reopen the Strait of Hormuz by Tuesday.
pepifoto/iStock via Getty Images Wix ( WIX ) shares have plummeted 9.5% after announcing the results of their modified Dutch auction , with the company agreeing to buy an astounding 31.6% of its shares outstanding at a premium to market price, for a total consideration of $1.72 billion. Generally speaking, you'd expect a company buying back 32% of its shares to be a major catalyst for the stock, b...
pepifoto/iStock via Getty Images Wix ( WIX ) shares have plummeted 9.5% after announcing the results of their modified Dutch auction , with the company agreeing to buy an astounding 31.6% of its shares outstanding at a premium to market price, for a total consideration of $1.72 billion. Generally speaking, you'd expect a company buying back 32% of its shares to be a major catalyst for the stock, but Wix gave back half of the gains since announcing its plans. I argue that this is the result of the confusing path they chose to execute and fund the plan, and a continuation of the deep skepticism facing the company in the AI era. Above all, it's the fact that Wix has become an unprofitable business post the acquisition of Base44. "Deep Value" investors should take a closer look at the company's financials. Wix's Fall Is A Lot About Fundamentals, Not Just AI Fears Wix shares are in a 55% drawdown, and the consensus view is that this is mostly about overblown AI concerns. Data by YCharts I found AI to be more of an opportunity than a risk for Wix, but I think any discussion about the stock that doesn't include significant focus on its extremely deteriorating fundamentals misses the point. Yes, AI concerns have sent many stocks into deep drawdowns, and it does deserve a good portion of the "credit" when it comes to Wix's selloff as well. However, the company's fundamentals have a lot to do with it as well. Created by the author based on Wix reports. Wix's operating expenses as a percentage of sales went back three years, returning to the days when it was a money-losing company and the poster child of the 2022 selloff . Created by the author based on Wix reports. Consequently, the last quarter showed the worst operating loss since Q2-22, down $73 million, only two quarters after Wix reached peak profitability with 9% operating margins and $44 million of quarterly operating profit. Now, management says that Wix's core business maintains similar fundamentals, trying to distin...
Luis Alvarez/DigitalVision via Getty Images Investment overview I wrote about Grocery Outlet Holding ( GO ) previously with a hold rating, as I wasn't sure about the earnings strength given signs of poor demand and weak legacy store performance. While I did not call for a sell rating, I believed staying on the sideline should be considered a "win" since the stock is down massively from ~$20 to $7 ...
Luis Alvarez/DigitalVision via Getty Images Investment overview I wrote about Grocery Outlet Holding ( GO ) previously with a hold rating, as I wasn't sure about the earnings strength given signs of poor demand and weak legacy store performance. While I did not call for a sell rating, I believed staying on the sideline should be considered a "win" since the stock is down massively from ~$20 to $7 as I write this update. I am now downgrading GO to sell because the story looks worse, not better. GO is no longer dealing with just tech debt. It is now facing a murkier value proposition and a store growth strategy that appears to have gone off track. The value proposition has slipped In my previous thesis, the main debate was whether GO could get past its systems disruption fast enough for the order guide, better buying tools, and improved operator stability to improve store productivity. While I was not bullish previously, I could still see a path where it could be done if GO executed well. Fast forward to today; that is no longer just the problem GO is facing. I believe GO's value proposition is getting murkier, and that directly threatens the reason for GO to trade at a premium multiple (traded at >30x forward PE at one point back in 2022). We can infer this from management's commentary in the Q4 2025 earnings call. Firstly, they noted consumer pressure got worse in Q4 and that weakness carried into Q1. Secondly, they also said customer research showed that while their base pricing remained competitive, value perception had weakened. Lastly, GO's effort to improve in-stocks and everyday assortment has squeezed the supply chain so much that it has reduced the flow of opportunistic product. That last point is important to note because it means GO has effectively weakened the part of the model that actually drives the shopping experience. Specifically, if you recall, the core value proposition of GO is not to win by looking like a normal discount grocer. GO's differentia...