Wix (WIX) AI Stock Analysis

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Wix

(NASDAQ:WIX)

Rating:67Neutral

Price Target:

$162.00

▲(2.21%Upside)

Wix's overall stock score is influenced by strong earnings performance and strategic innovations driving growth. However, high valuation and technical bearishness, along with balance sheet risks, temper the positive outlook.

Positive Factors

Acquisition Strategy

The acquisition of Base44 adds to Wix’s AI capabilities and bolsters its functionality outside of website design.

Competitive Position

Management has shown an ability to adapt and innovate quickly, which enhances the durability of Wix's competitive position.

Product Development

Expectations for the Fall product release to align with the core web presence business and act as a meaningful catalyst for shares.

Negative Factors

AI Disruption Risk

There is a perception of potential AI disruption risk impacting the business.

Guidance and Forecasts

The reduction in constant currency FY25 guidance overshadowed solid Q1 results, which led to a significant drop in stock price.

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)

Market Cap

$8.72B

Dividend YieldN/A

Average Volume (3M)1.05M

Price to Earnings (P/E)63.5

Beta (1Y)1.52

Revenue Growth12.89%

EPS Growth123.39%

CountryUS

Employees4,399

SectorTechnology

Sector Strength81

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)1.55

Shares Outstanding55,668,175

10 Day Avg. Volume1,024,287

30 Day Avg. Volume1,047,054

Financial Highlights & Ratios

PEG Ratio-0.04

Price to Book (P/B)-16.93

Price to Sales (P/S)0.00

P/FCF Ratio-132.96

Enterprise Value/Market Cap0.73

Enterprise Value/Revenue0.92

Enterprise Value/Gross Profit5.14

Enterprise Value/Ebitda13.57

Forecast

1Y Price Target

$221.64

Price Target Upside39.84% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering23

Wix Business Overview & Revenue Model

Company DescriptionWix.com Ltd. is an Israeli software company that provides cloud-based web development services. It allows users to create HTML5 websites and mobile sites through the use of online drag and drop tools. The company operates in the technology and software sectors, offering a platform that caters to a wide range of users including individuals, small businesses, and enterprises looking to establish an online presence. Wix's core products include a website builder, a selection of customizable templates, and additional applications such as e-commerce tools, booking systems, and marketing solutions.

How the Company Makes MoneyWix makes money primarily through a freemium business model, where users can start with a free account that includes Wix branding, and then upgrade to premium subscriptions for additional features and functionalities. These premium plans offer benefits such as removing Wix ads, connecting custom domains, increasing storage and bandwidth, and gaining access to advanced e-commerce tools. Furthermore, Wix generates revenue through its vertical solutions, which include Wix Stores for e-commerce, Wix Bookings for appointment scheduling, and Wix Restaurants for managing online orders. The company also earns from third-party app sales in the Wix App Market, where developers sell applications that integrate with Wix's platform. Significant partnerships, as well as the continuous enhancement of its product offerings, contribute to its earnings by attracting a broader user base and encouraging existing users to upgrade their subscriptions.

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:May 21, 2025

(Q1-2025)

% Change Since: -12.79%|

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

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

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

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.81B	1.76B	1.56B	1.39B	1.27B	988.76M
	Gross Profit
1.24B	1.20B	1.05B	861.44M	781.08M	673.06M
	EBIT
127.88M	100.14M	-24.38M	-285.35M	-325.53M	-197.34M
	EBITDA
158.66M	186.90M	69.11M	-439.05M	-28.07M	-104.20M
	Net Income Common Stockholders
148.09M	138.32M	33.14M	-424.86M	-117.21M	-216.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.07B	1.11B	962.89M	1.06B	1.32B	1.04B
	Total Assets
1.81B	1.91B	1.80B	1.76B	2.06B	1.83B
	Total Debt
962.43M	969.95M	996.32M	1.13B	1.03B	930.96M
	Net Debt
309.16M	309.01M	386.70M	885.75M	582.58M	762.11M
	Total Liabilities
1.97B	1.99B	1.86B	2.02B	1.91B	1.58B
	Stockholders Equity
-168.62M	-78.79M	-54.48M	-263.24M	145.72M	250.34M
Cash Flow		Free Cash Flow
514.81M	479.60M	182.20M	-33.51M	27.98M	129.20M
	Operating Cash Flow
527.15M	497.42M	248.25M	37.15M	65.69M	148.05M
	Investing Cash Flow
-22.37M	-35.47M	566.71M	-54.66M	376.87M	-800.23M
	Financing Cash Flow
-365.40M	-406.73M	-450.02M	-189.16M	-160.06M	552.94M

Wix Technical Analysis

Technical Analysis Sentiment

Negative

Last Price158.50

Price Trends

50DMA

161.78

Negative

100DMA

178.76

Negative

200DMA

184.71

Negative

Market Momentum

MACD

-2.48

Negative

RSI

50.13

Neutral

STOCH

83.56

Negative

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 158.5 is above the 20-day moving average (MA) of 153.33, below the 50-day MA of 161.78, and below the 200-day MA of 184.71, indicating a neutral trend. The MACD of -2.48 indicates Negative momentum. The RSI at 50.13 is Neutral, neither overbought nor oversold. The STOCH value of 83.56 is Negative, 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOX	78 Outperform	$5.17B	27.79	152.34%	―	4.88%	80.94%
MDB	78 Outperform	$16.55B	―	-4.00%	―	19.24%	59.66%
AKAM	76 Outperform	$11.50B	26.55	9.82%	―	3.51%	-27.28%
GDDY	69 Neutral	$25.38B	34.18	245.70%	―	7.93%	-56.44%
DBX	69 Neutral	$8.15B	18.61	-60.11%	―	0.79%	0.59%
WIX	67 Neutral	$8.72B	63.49	-46.79%	―	12.89%	123.39%
Sector *	62 Neutral	$11.92B	10.03	-7.37%	3.70%	7.32%	-8.25%

* Technology Sector Average

Performance Comparison

WIX

Wix

158.50

0.61

0.39%

AKAM

Akamai

78.70

-10.66

-11.93%

BOX

Box

35.02

9.75

38.58%

GDDY

GoDaddy

176.42

38.51

27.92%

MDB

MongoDB

204.15

-16.30

-7.39%

DBX

Dropbox

28.32

7.36

35.11%

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.