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Wix.com Ltd (WIX)
:WIX

Wix (WIX) AI Stock Analysis

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WI

Wix

(NASDAQ:WIX)

Rating:63Neutral
Price Target:
$168.00
▲(6.33%Upside)
Wix's overall stock score is driven primarily by its robust earnings call performance and strong financial growth, despite the challenges of negative equity and high leverage. The technical indicators and high valuation present concerns but are offset by innovative product launches and strategic focus on AI, suggesting potential for future growth.
Positive Factors
Acquisition
The acquisition of Base44 adds to Wix’s AI capabilities and bolsters its functionality outside of website design.
Market Opportunity
Base44 technology targets developers that are outside the scope of Wix's core user today, which expands the company's reach to new users and new market opportunity.
Product and Pricing
Strong partner checks leave analysts confident Wix Studio pricing represents a meaningful lever in 2026.
Negative Factors
Guidance and Performance
A reduction in constant currency FY25 guidance more than offset a Q1 print reflecting strong performance across all key metrics.
Investor Sentiment
Negative investor sentiment on Wix is starting to feel more structural than just tactical positioning.

Wix (WIX) vs. SPDR S&P 500 ETF (SPY)

Wix Business Overview & Revenue Model

Company DescriptionWix.com Ltd., together with its subsidiaries, develops and markets a cloud-based platform that enables anyone to create a website or web application in North America, Europe, Latin America, Asia, and internationally. The company offers Wix Editor, a drag-and-drop visual development and website editing environment platform; Wix ADI that enables users to create a website for their specific needs; and Corvid by Wix to create websites and web applications. It also provides Ascend by Wix, which offers its users access to a suite of approximately 20 products or features enabling them to connect with their customers, automate their work, and grow their business; Wix Logo Maker that allows users to generate a logo using artificial intelligence; Wix Answers, a support infrastructure enabling its users to help their users across various channels; and Wix Payments, a payment platform, which helps its users receive payments from their users through their Wix Website. In addition, the company offers various vertical-specific applications that business owners use to operate various aspects of their business online. Further, it provides a range of complementary services, including App Market that offers its registered users the ability to install and uninstall a range of free and paid web applications; Wix Arena, an online marketplace that brings users seeking help in creating and managing a website, together with Web experts; and Wix App, a native mobile application, which enables users to manage their Websites and Wix operating systems. As of December 31, 2021, the company had approximately 222 million registered users and 6 million premium subscriptions. The company was formerly known as Wixpress Ltd. Wix.com Ltd. was incorporated in 2006 and is headquartered in Tel Aviv, Israel.
How the Company Makes MoneyWix generates revenue through a freemium model, providing its core website-building services for free while offering premium subscription plans with advanced features, such as custom domain names, increased bandwidth, e-commerce capabilities, and enhanced customer support. These premium plans are available in various tiers, catering to different business needs and budgets. Additionally, Wix earns revenue from its business solutions, including Wix App Market, where third-party developers offer applications to enhance website functionality, and Ascend by Wix, a suite of business tools for marketing and customer management. The company also monetizes its platform through partnerships and integrations with leading payment processors and service providers, enabling users to optimize their online presence and business operations.

Wix Key Performance Indicators (KPIs)

Any
Any
Creative Subscription ARR
Creative Subscription ARR
Tracks annual recurring revenue from creative subscriptions, indicating the stability and growth potential of the company's subscription-based business model.
Chart InsightsWix's Creative Subscription ARR has shown consistent growth, reaching $1.37 billion in early 2025, reflecting strong demand and strategic product enhancements. The recent earnings call highlights robust financial performance and product innovation, including the launch of Wixel and AI tools like Astro, which are likely driving increased user engagement and subscription growth. Despite macroeconomic uncertainties, Wix's strategic focus on innovation and expanding its Partners segment, which saw a 24% revenue increase, positions it well for sustained growth in its subscription business.
Data provided by:Main Street Data

Wix Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q1-2025)
|
% Change Since: -13.06%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong start to 2025 for Wix, with significant product innovations and strong financial performance. However, some challenges remain, including macroeconomic uncertainties and specific GPV growth issues.
Q1-2025 Updates
Positive Updates
Strong Start to 2025
Wix reported robust demand for its platform in the first quarter, with a 12% year-over-year increase in total bookings to $511 million and a 13% increase in revenue to $474 million.
Launch of Wixel
Wix introduced Wixel, a new visual design platform that combines Wix's design expertise with Generative AI, marking a significant product innovation aimed at democratizing visual design.
Strong Performance in Partners Revenue
Partners revenue grew 24% year-over-year to $172 million, driven by higher subscription purchases and improved adoption of business applications.
Free Cash Flow Milestone
The company achieved a milestone with free cash flow reaching over $142 million, representing 30% of revenue.
AI Innovations
Wix launched Astro, an AI assistant, and various AI-powered tools to enhance user engagement and personalization, indicating strong strategic momentum in AI.
Negative Updates
Challenges with GPV Growth
Total GPV growth faced a 2-point headwind due to accelerated GPV drawdown in a small subsidiary, impacting the overall transaction revenue growth.
Macroeconomic Uncertainty
Despite strong demand in early 2025, the company expressed caution due to potential macroeconomic volatility, particularly affecting the Business Solutions segment.
Company Guidance
In the first quarter of 2025, Wix highlighted strong momentum with total bookings reaching $511 million, marking a 12% year-over-year increase. Revenue was reported at $474 million, achieving a 13% year-over-year growth and surpassing the high-end of the company's guidance. Notably, the Partners segment saw a 24% year-over-year revenue growth to $172 million, driven by increased subscription purchases and adoption of business applications. The company introduced Wixel, a new visual design platform, and Astro, an AI assistant, enhancing user engagement and product innovation. Transaction revenue grew by 19% year-over-year to $59 million, although Wix expects this growth to align with GPV growth in the future. Free cash flow reached $142 million, equating to 30% of revenue, with expectations for full-year free cash flow between $590 million and $610 million. Despite macroeconomic uncertainties, Wix remains optimistic about continuing its growth trajectory, supported by strategic product developments and robust top-of-funnel activity.

Wix Financial Statement Overview

Summary
Wix's financial performance is characterized by significant improvement in profitability with strong revenue growth and robust cash flow management. However, the balance sheet shows high leverage and negative equity, posing potential financial risks.
Income Statement
85
Very Positive
Wix's income statement shows significant improvement in profitability over time, with a notable transition from net losses to net income. The gross profit margin remains strong, and recent revenue growth is substantial. However, past EBIT fluctuations suggest some operational volatility.
Balance Sheet
60
Neutral
The balance sheet reflects a concerning negative stockholders' equity, primarily driven by accumulated losses over previous years. The debt-to-equity ratio is unfavorable, indicating high leverage. However, the company's cash position is strong, providing some financial stability.
Cash Flow
75
Positive
Cash flow analysis indicates positive free cash flow growth, demonstrating effective cash management. Operating cash flow substantially exceeds net income, signaling strong cash conversion. Despite past fluctuations in investing activities, free cash flow generation is robust.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.81B1.76B1.56B1.39B1.27B988.76M
Gross Profit1.24B1.20B1.05B861.44M781.08M673.06M
EBITDA158.66M186.90M69.11M-439.05M-28.07M-104.20M
Net Income148.09M138.32M33.14M-424.86M-117.21M-216.52M
Balance Sheet
Total Assets1.81B1.91B1.80B1.76B2.06B1.83B
Cash, Cash Equivalents and Short-Term Investments1.07B1.11B962.89M1.06B1.32B1.04B
Total Debt962.43M969.95M996.32M1.13B1.03B930.96M
Total Liabilities1.97B1.99B1.86B2.02B1.91B1.58B
Stockholders Equity-168.62M-78.79M-54.48M-263.24M145.72M250.34M
Cash Flow
Free Cash Flow514.81M479.60M182.20M-33.51M27.98M129.20M
Operating Cash Flow527.15M497.42M248.25M37.15M65.69M148.05M
Investing Cash Flow-22.37M-35.47M566.71M-54.66M376.87M-800.23M
Financing Cash Flow-365.40M-406.73M-450.02M-189.16M-160.06M552.94M

Wix Technical Analysis

Technical Analysis Sentiment
Negative
Last Price158.00
Price Trends
50DMA
162.30
Negative
100DMA
169.49
Negative
200DMA
184.90
Negative
Market Momentum
MACD
0.57
Negative
RSI
46.78
Neutral
STOCH
48.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WIX, the sentiment is Negative. The current price of 158 is below the 20-day moving average (MA) of 158.85, below the 50-day MA of 162.30, and below the 200-day MA of 184.90, indicating a bearish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 48.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WIX.

Wix Risk Analysis

Wix disclosed 59 risk factors in its most recent earnings report. Wix reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Wix Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
MDMDB
78
Outperform
$17.07B-4.00%19.24%59.66%
76
Outperform
$11.79B27.209.82%3.51%-27.28%
BOBOX
69
Neutral
$4.86B26.16152.34%4.88%80.94%
67
Neutral
$25.23B33.62245.70%7.93%-56.44%
DBDBX
64
Neutral
$7.72B17.98-60.11%0.79%0.59%
63
Neutral
$33.87B5.80-11.87%1.82%5.31%-18.50%
WIWIX
63
Neutral
$9.01B63.83-46.79%12.89%123.39%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WIX
Wix
158.00
-5.72
-3.49%
AKAM
Akamai
80.63
-13.47
-14.31%
BOX
Box
33.73
8.28
32.53%
GDDY
GoDaddy
175.13
33.01
23.23%
MDB
MongoDB
217.12
-31.66
-12.73%
DBX
Dropbox
27.68
5.36
24.01%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 10, 2025