JTA — The coronavirus crisis has helped make Wix, the popular website creator platform, the second-highest valued Israeli company.
Its share price has increased more than threefold in the past five months from about $81 in March to trading as high as about $319 on the Nasdaq exchange last week before dropping to $277.94 on Monday.
Wix allows users to easily create websites with templates and drag and drop tools in a way similar to competitors such as WordPress and Squarespace.
A Motely Fool analysis published Monday on the Nasdaq website attributed the rise, also enjoyed by other digital solution providers, to the coronavirus pandemic and resulting lockdown measures which has forced many businesses to increasingly use the internet to reach customers. In addition, many education institutes were forced to close up and move to online learning, creating another demand for web-building capabilities.
“We’ve made a leap from being a consumer product for a particular group to a necessity for many more people,” said Nir Zohar, the company’s president and chief operating officer. “It’s the way many people today are making a living, by selling online.”
Wix’s market cap was around $4 billion in 2018 — it is now over $14 billion, according to the Nasdaq website. That puts the nearly 15-year-old company close behind the cybersecurity firm Check Point Software Technologies, which at $17.3 billion is Israel’s most valuable business.
Avishai Abrahami, Nadav Abrahami and Giora Kaplan founded Wix in Tel Aviv in 2006.