Wix (WIX) AI Stock Analysis

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Wix

(NASDAQ:WIX)

Rating:58Neutral

Price Target:

$145.00

▲(13.20% Upside)

Wix's overall stock score is driven primarily by strong financial performance and positive earnings call outcomes. However, technical analysis signals a bearish trend, and the high P/E ratio suggests overvaluation, which weigh down the overall score. While product innovations and strategic growth are promising, financial stability and technical indicators require careful monitoring.

Positive Factors

Acquisition and Market Expansion

The acquisition of Base44 expands Wix's reach to new users and new market opportunity.

Operational Efficiency

There is an expected meaningful upside to operational income as fixed costs are managed deliberately.

Pricing Strategy

Wix is introducing pricing increases, providing visibility into bookings acceleration.

Negative Factors

Revenue Deceleration Concerns

Investor attention has turned towards the deceleration in Partner revenue and the uncertainty if the promised drivers of acceleration will deliver.

Revenue Growth Challenges

WIX is not expected to achieve its expected year-over-year bookings growth for the second quarter.

Subscription Headwinds

The 2024 pricing actions pose a significant headwind to premium subscriptions.

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

Market Cap

$7.18B

Dividend YieldN/A

Average Volume (3M)695.54K

Price to Earnings (P/E)52.1

Beta (1Y)1.47

Revenue Growth12.89%

EPS Growth123.39%

CountryUS

Employees4,399

SectorTechnology

Sector Strength92

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)2.28

Shares Outstanding55,668,175

10 Day Avg. Volume799,852

30 Day Avg. Volume695,539

Financial Highlights & Ratios

PEG Ratio0.26

Price to Book (P/B)-151.35

Price to Sales (P/S)6.77

P/FCF Ratio24.86

Enterprise Value/Market Cap1.36

Enterprise Value/Revenue5.38

Enterprise Value/Gross Profit7.90

Enterprise Value/Ebitda45.68

Forecast

1Y Price Target

$224.62

Price Target Upside75.36% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering22

Wix Business Overview & Revenue Model

Company DescriptionWix.com Ltd. is a leading global software company that offers a cloud-based platform for creating, managing, and growing an online presence. Catering primarily to small and medium-sized businesses, freelancers, and individuals, Wix provides a comprehensive suite of tools for building websites, managing online stores, and integrating various digital services. Its user-friendly platform allows users to design professional websites with drag-and-drop functionality, without requiring extensive technical expertise.

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

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

(Q1-2025)

% Change Since: -29.52%|

Next Earnings Date:Nov 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 demonstrates strong revenue and profit growth, with improved operational efficiency. However, the negative equity and high leverage pose potential risks. The company’s ability to generate cash flow is a positive indicator, but financial stability remains a concern.

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	1.81B	1.76B	1.56B	1.39B	1.27B	988.76M
Gross Profit	1.24B	1.20B	1.05B	861.44M	781.08M	673.06M
EBITDA	213.61M	186.90M	69.11M	-439.05M	-28.07M	-104.20M
Net Income	148.09M	138.32M	33.14M	-424.86M	-117.21M	-216.52M
Balance Sheet
Total Assets	1.81B	1.91B	1.80B	1.76B	2.06B	1.89B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.11B	962.89M	1.06B	1.32B	1.04B
Total Debt	962.43M	969.95M	996.32M	1.13B	1.03B	930.96M
Total Liabilities	1.97B	1.99B	1.86B	2.02B	1.91B	1.61B
Stockholders Equity	-168.62M	-78.79M	-54.48M	-263.24M	145.72M	287.19M
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 Price128.09

Price Trends

50DMA

152.88

Negative

100DMA

159.78

Negative

200DMA

183.38

Negative

Market Momentum

MACD

-6.70

Positive

RSI

23.12

Positive

STOCH

6.58

Positive

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 128.09 is below the 20-day moving average (MA) of 147.81, below the 50-day MA of 152.88, and below the 200-day MA of 183.38, indicating a bearish trend. The MACD of -6.70 indicates Positive momentum. The RSI at 23.12 is Positive, neither overbought nor oversold. The STOCH value of 6.58 is Positive, 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 (50)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOX	76 Outperform	$4.57B	24.50	152.34%	―	4.88%	80.94%
MDB	75 Outperform	$18.65B	―	-4.00%	―	19.24%	59.66%
AKAM	73 Outperform	$10.87B	25.09	9.82%	―	3.51%	-27.28%
GDDY	67 Neutral	$21.86B	29.45	245.70%	―	7.93%	-56.44%
DBX	66 Neutral	$7.36B	17.17	-60.11%	―	0.79%	0.59%
WIX	58 Neutral	$7.18B	52.10	-46.79%	―	12.89%	123.39%
Sector *	50 Neutral	AU$1.62B	3.22	-31.35%	3.51%	16.14%	-6.73%

* Technology Sector Average

Performance Comparison

WIX

Wix

128.09

-28.26

-18.07%

AKAM

Akamai

73.65

-18.99

-20.50%

BOX

Box

31.57

4.80

17.93%

GDDY

GoDaddy

153.43

0.67

0.44%

MDB

MongoDB

228.25

3.35

1.49%

DBX

Dropbox

26.13

4.45

20.53%

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 31, 2025