Wix.com (WIX-Q)

Activist Starboard Value recently bought some cloud computing companies including this. A very popular platform that's easy to use (he likes it), but they operate in a crowded field (Square Space, Go Daddy, Adobe, Shopify). Could be an uphill battle.

Forget "risk-off" trading. Rather, IPOs of 2020 came in way too hot and got burned; Covid stocks like Docusign are hammered; Chinese stocks are a train wreck; cryptos hit; specific retailers hit by supply shortages; and then there are cloud-based stocks trading at sky-high price-to-sale multiples. He's a fan of this group, but at ridiculous valuations. The cloud isn't dead, though. Inflation erodes the future value of these stocks. Also, these stocks are speculative, which tend to trade as a group; investors sell first and ask questions later. A few bad earnings can crush the entire group, like Twilio and Docusign. Salesforce actually reported strong results though a weak forecast. As a group, the cloud stock were down 33% on average, in a bear market. WIX and Fastly down the most, but are both good companies offering fine services. The cloud stocks peaked a long time ago, like Jan-Feb, like Zoom. Only 13 out of 50 of these stocks trade at less than 100x earnings! Ones with a lower valuation have done better than the higher ones during this rout. Even now, there's still expensive on a valuation basis.

The stock has risen 800% in 5 years, and they empower small businesses through building their platforms.

He's a Wix customer for his restaurant. Some Wix customers (i.e. restaurateurs) are shut down because of Covid lockdowns, so don't be discouraged by recent weakness in the stock.

Israeli tech company. Cloud-based development platform. Users can access management solutions, web design, and web development. Lots of competition, but they're the leader. Fantastic run this year. Narrow moat. Margins getting squeezed. His price target is $323.