Wix (WIX) AI Stock Analysis

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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)

Market Cap

$9.01B

Dividend YieldN/A

Average Volume (3M)907.70K

Price to Earnings (P/E)63.8

Beta (1Y)1.42

Revenue Growth12.89%

EPS Growth123.39%

CountryUS

Employees4,399

SectorTechnology

Sector Strength89

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)1.55

Shares Outstanding55,668,175

10 Day Avg. Volume563,798

30 Day Avg. Volume907,697

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 Cap0.71

Enterprise Value/Revenue0.92

Enterprise Value/Gross Profit5.14

Enterprise Value/Ebitda13.57

Forecast

1Y Price Target

$219.04

Price Target Upside38.63% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering24

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

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

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.

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	158.66M	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	1.83B
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	1.58B
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 Price158.00

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
MDB	78 Outperform	$17.07B	―	-4.00%	―	19.24%	59.66%
AKAM	76 Outperform	$11.79B	27.20	9.82%	―	3.51%	-27.28%
BOX	69 Neutral	$4.86B	26.16	152.34%	―	4.88%	80.94%
GDDY	67 Neutral	$25.23B	33.62	245.70%	―	7.93%	-56.44%
DBX	64 Neutral	$7.72B	17.98	-60.11%	―	0.79%	0.59%
Sector *	63 Neutral	$33.87B	5.80	-11.87%	1.82%	5.31%	-18.50%
WIX	63 Neutral	$9.01B	63.83	-46.79%	―	12.89%	123.39%

* Technology Sector Average

Performance Comparison

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