Wix’s Strong Q1 Performance and Innovation Drive Buy Rating Amid Macroeconomic Uncertainties

William Blair analyst Arjun Bhatia has reiterated their bullish stance on WIX stock, giving a Buy rating today.

Arjun Bhatia has given his Buy rating due to a combination of factors, including Wix’s strong first-quarter performance and its ability to exceed market expectations in revenue, bookings, and adjusted free cash flow margin. The company’s growth was driven by both partners and self-creators, with continued strong demand and new cohort strength. Additionally, innovations such as AI and Studio have contributed positively to the company’s growth trajectory.
Despite some slowdown in business solutions revenue growth, Wix’s management has maintained its guidance, showing confidence in the company’s future prospects. The introduction of new AI-powered tools like Wixel and the anticipation of further product launches are expected to drive growth. Although there are macroeconomic uncertainties, Bhatia remains optimistic about Wix’s execution, expanding margins, and the potential for innovation to enhance the company’s offerings.

According to TipRanks, Bhatia is a 4-star analyst with an average return of 4.9% and a 52.82% success rate. Bhatia covers the Technology sector, focusing on stocks such as InterDigital, ServiceNow, and Five9.

In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $207.00 price target.