Wix is undervalued after a 25% drop, despite outpacing peers in growth and AI innovation, making it a compelling buy opportunity. The Company's advanced AI tools, like Wixel and recent acquisitions of a vibe coding startup, differentiate it from commoditized web hosting rivals and drive superior growth. The current valuation at 4.2x EV/FY25 revenue is a bargain vs. peers like GoDaddy and other software companies with similar growth rates.
Wix.com (WIX) concluded the recent trading session at $161.21, signifying a +1.59% move from its prior day's close.
Wix.com (WIX) reported earnings 30 days ago. What's next for the stock?
WIX buys Base44 for $80 million, boosting its AI suite with no-code, chat-driven app development tools for businesses.
The latest trading day saw Wix.com (WIX) settling at $149.10, representing a -3.65% change from its previous close.
Recently, Zacks.com users have been paying close attention to Wix.com (WIX). This makes it worthwhile to examine what the stock has in store.
Wix.com Ltd NASDAQ: WIX started the week's trading just over the $150 mark, though it has still been down 16% since its earnings report last Wednesday. The stock had been rallying into results but took a hit after missing on earnings, even as revenue came in above expectations.
WIX acquires Hour One to scale AI media creation, boost immersive web design and cut reliance on third parties for front-end innovation.
I maintain my 'buy' rating on Wix with a $207 price target, seeing 36% upside potential despite macroeconomic concerns surrounding its Business Solutions segment and monetization uncertainty of Wixel. Wix's strong new user growth, robust partner channel momentum, and expanding operating leverage support long-term optimism, along with its AI-led product innovation to drive user monetization. Wix is trading at just 16x FY27 earnings, which I see as severely undervalued given its projected growth, profitability, and improving margins.
Wix delivered solid Q1 results with strong revenue and margin growth, but missed EPS expectations and issued cautious guidance, triggering a sharp selloff. Despite strategic concerns and AI-related uncertainty, Wix remains best-in-class for SMB website solutions and trades at a deeply discounted valuation. I see Wix as an opportunistic investment—not a buy-and-hold forever stock—given its sensitivity to sentiment and lack of a wide moat.
Wix.com Ltd. (NASDAQ:WIX ) Q1 2025 Results Conference Call May 21, 2025 8:30 AM ET Company Participants Emily Liu - IR Avishai Abrahami - CEO and Co-Founder Nir Zohar - President and COO Lior Shemesh - CFO Conference Call Participants Ygal Arounian - Citigroup Ken Wong - Oppenheimer John Byun - Jefferies Elizabeth Porter - Morgan Stanley Brad Erickson - RBC Capital Markets Josh Beck - Raymond James Operator Good day.
Although the revenue and EPS for Wix.com (WIX) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.