Wix (WIX) AI Stock Analysis

Compare

3,740 Followers

Top Page

Wix

(NASDAQ:WIX)

Rating:60Neutral

Price Target:

$127.00

▼(-3.53% Downside)

Wix's overall stock score is driven by strong earnings call results and growth prospects, despite technical and valuation challenges. The company's financial performance shows potential but is hindered by balance sheet issues. The technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation. However, the positive sentiment from the earnings call and strategic innovations provide a counterbalance, supporting a moderate overall score.

Positive Factors

Earnings

Wix reports solid 2Q beat with revenue and free cash flow above market expectations.

Growth Initiatives

A large focus of this quarter’s earnings was Base44, an AI vibe coding solution Wix purchased, positioning Wix well in a fast-evolving AI landscape.

Negative Factors

Financial Guidance

Management lowered its FY25 gross margin guidance due to increased investments in AI, marketing, and headcount.

Investor Concerns

Despite raising the FY bookings guide, some investors might remain cautious due to worries about AI disintermediation until more robust growth is realized.

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

Market Cap

$7.33B

Dividend YieldN/A

Average Volume (3M)1.31M

Price to Earnings (P/E)47.4

Beta (1Y)1.48

Revenue Growth13.04%

EPS Growth126.85%

CountryUS

Employees4,399

SectorTechnology

Sector Strength86

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)2.28

Shares Outstanding55,668,175

10 Day Avg. Volume1,302,161

30 Day Avg. Volume1,310,762

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.27

Enterprise Value/Revenue4.99

Enterprise Value/Gross Profit7.30

Enterprise Value/Ebitda40.74

Forecast

1Y Price Target

$206.89

Price Target Upside57.15% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering20

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 primarily through a subscription-based model, offering various pricing tiers for its premium services. Key revenue streams include monthly and annual subscriptions for premium plans that provide users with additional features such as custom domain names, increased storage, and e-commerce capabilities. Additionally, Wix earns money from its App Market, where third-party developers can sell applications that enhance website functionality. The company also benefits from advertising revenue and partnerships with payment processors and domain registrars, which contribute to its overall earnings.

Wix Key Performance Indicators (KPIs)

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:Aug 06, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Positive

The earnings call reflected strong growth driven by AI innovation, successful integration of BASE44, and robust cohort performance. Despite minor challenges like increased expenses and a decline in organic search traffic, the positive developments and forward-looking strategies provide a strong outlook.

Q2-2025 Updates

Positive Updates

Strong Revenue Growth

Total revenue grew to $490 million, up 12% year-over-year and above the high end of guidance.

Partner Revenue Surge

Partner revenue grew 24% year-over-year to $183 million, driven by continued adoption in the professional audience segment.

AI Innovation and Adoption

Increased adoption of AI across the platform with new proprietary algorithms and the introduction of 'vibe coding' through the acquisition of BASE44.

BASE44 Acquisition Success

BASE44 is on track to generate $40 million to $50 million of ARR by the end of this year, with expectations to reach $100 million ARR.

Improved Gross Margin

Total non-GAAP gross margin in Q2 was 70%, up from 69% in Q1, due to productivity benefits from AI solutions.

Strong Cohort Performance

New user cohort bookings grew more than 20% in July compared to the previous year, with more than 5 million new users onboarded in Q2, up 6% year-over-year.

Free Cash Flow and Share Repurchase

Q2 free cash flow was $148 million or 30% of revenue, with approximately 646,000 Wix ordinary shares repurchased for nearly $100 million.

Negative Updates

Organic Search Traffic Decline

There is a noted decline in organic search traffic, attributed to changes in how people are found on LLMs.

Increased Operating Expenses

Non-GAAP R&D and sales and marketing expenses increased due to headcount increases and BASE44 integration.

Relatively Small Impact from Pricing Changes

Targeted pricing optimizations were not significant and were part of the original plan, with limited impact on the current financial year.

Company Guidance

During Wix's Second Quarter 2025 Earnings Conference Call, the company provided robust guidance for the remainder of the year, expecting a significant acceleration in growth due to several key factors. The company raised its full-year bookings outlook to $2.04 billion to $2.075 billion, representing an 11% to 13% year-over-year growth, driven by stronger new cohort performance, contribution from Base44, and targeted pricing optimizations. Wix's total revenue for 2025 is projected to range between $1.975 billion and $2 billion, marking a 12% to 14% increase from the previous year. The second quarter saw total bookings of $510 million, a 10% year-over-year increase, with revenue reaching $490 million, up 12% from the previous year. The company also highlighted the rapid growth of Base44, expected to generate $40 million to $50 million of ARR by the end of 2025, contributing to the expected $100 million ARR milestone. Additionally, Wix announced a $400 million share repurchase authorization, reflecting its commitment to returning value to shareholders. The guidance was buoyed by strong performance metrics, including a 14% growth in bookings from the Q2 2025 user cohort compared to Q2 2024, and an impressive 18% year-over-year increase in transaction revenue.

Wix Financial Statement Overview

Summary

Wix demonstrates strong revenue and profit growth with improved operational efficiency. However, the negative equity and high leverage pose potential risks, despite robust cash flow generation.

Income Statement

Very Positive

Wix has shown impressive revenue growth from 2020 to TTM (Trailing-Twelve-Months), with a significant increase in total revenue. The gross profit margin remains strong, reflecting efficient cost management. Net profit margin has improved considerably, indicating enhanced profitability. EBIT and EBITDA margins have turned positive, showcasing operational improvements.

Balance Sheet

Negative

The balance sheet reveals a concerning negative stockholders' equity, indicating potential financial instability. The debt-to-equity ratio is not calculable due to negative equity, highlighting high leverage. However, the company has maintained a substantial cash position, providing some liquidity buffer.

Cash Flow

Positive

Wix's cash flow statement shows robust operating cash flow, with a strong free cash flow trajectory. The free cash flow to net income ratio indicates efficient cash generation relative to net income. However, the high financing cash outflows could be a concern if not managed properly.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.87B	1.76B	1.56B	1.39B	1.27B	988.76M
Gross Profit	1.28B	1.20B	1.05B	861.44M	781.08M	673.06M
EBITDA	228.89M	186.90M	69.11M	-439.05M	-28.07M	-104.20M
Net Income	166.27M	138.32M	33.14M	-424.86M	-117.21M	-216.52M
Balance Sheet
Total Assets	2.00B	1.91B	1.80B	1.76B	2.06B	1.89B
Cash, Cash Equivalents and Short-Term Investments	1.13B	1.11B	962.89M	1.06B	1.32B	1.04B
Total Debt	1.00B	969.95M	996.32M	1.13B	1.03B	930.96M
Total Liabilities	2.11B	1.99B	1.86B	2.02B	1.91B	1.61B
Stockholders Equity	-117.66M	-78.79M	-54.48M	-263.24M	145.72M	287.19M
Cash Flow
Free Cash Flow	551.45M	479.60M	182.20M	-33.51M	27.98M	129.20M
Operating Cash Flow	560.80M	497.42M	248.25M	37.15M	65.69M	148.05M
Investing Cash Flow	95.85M	-35.47M	566.71M	-54.66M	376.87M	-800.23M
Financing Cash Flow	-242.99M	-406.73M	-450.02M	-189.16M	-160.06M	552.94M

Wix Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price131.65

Price Trends

50DMA

144.90

Negative

100DMA

153.15

Negative

200DMA

180.25

Negative

Market Momentum

MACD

-4.35

Negative

RSI

47.07

Neutral

STOCH

88.20

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WIX, the sentiment is Neutral. The current price of 131.65 is above the 20-day moving average (MA) of 127.60, below the 50-day MA of 144.90, and below the 200-day MA of 180.25, indicating a neutral trend. The MACD of -4.35 indicates Negative momentum. The RSI at 47.07 is Neutral, neither overbought nor oversold. The STOCH value of 88.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDB	75 Outperform	$17.85B	―	-3.65%	―	21.90%	67.81%
BOX	74 Outperform	$4.51B	24.17	152.34%	―	6.29%	62.03%
AKAM	71 Outperform	$11.03B	27.28	9.21%	―	3.98%	-31.18%
DBX	68 Neutral	$7.45B	17.43	-60.11%	―	-0.04%	-5.07%
Sector *	61 Neutral	$35.62B	8.22	-10.94%	1.88%	8.86%	-10.36%
WIX	60 Neutral	$7.33B	47.38	-46.79%	―	13.04%	126.85%
GDDY	59 Neutral	$20.21B	26.01	288.03%	―	8.09%	-54.94%

* Technology Sector Average

Performance Comparison

WIX

Wix

131.65

-32.34

-19.72%

AKAM

Akamai

76.94

-23.14

-23.12%

BOX

Box

31.16

-0.78

-2.44%

GDDY

GoDaddy

146.25

-17.80

-10.85%

MDB

MongoDB

214.34

-21.03

-8.93%

DBX

Dropbox

28.24

3.86

15.83%

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: Aug 14, 2025