Wix (WIX) AI Stock Analysis

• Market Cap: $7.83B
• Dividend Yield: N/A
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 50.6
• Beta (1Y): 1.54
• Revenue Growth: 13.04%
• EPS Growth: 126.85%
• Country: US
• Employees: 4,399
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 2.28
• Shares Outstanding: 55,686,230
• 10 Day Avg. Volume: 1,347,439
• 30 Day Avg. Volume: 1,739,400
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 4.99
• Enterprise Value/Gross Profit: 7.30
• Enterprise Value/Ebitda: 40.74
• 1Y Price Target: $210.89
• Price Target Upside: 49.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 60 Neutral
• Price Target: $140.00 ▼(-0.46% Downside)

Wix's overall stock score is driven by strong earnings call guidance and growth prospects, despite financial challenges and high valuation. The company's strategic focus on AI and acquisitions positions it well for future growth, but current technical indicators suggest caution in the short term.

Positive Factors

AI Innovation and Adoption

Wix's focus on AI innovation enhances its product offerings, potentially increasing user engagement and retention, and positioning the company as a leader in tech-driven web solutions.

BASE44 Acquisition

The acquisition of BASE44 expands Wix's capabilities in application development, contributing to revenue growth and strengthening its competitive position in the market.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and expansion opportunities.

Negative Factors

High Financial Leverage

Significant leverage poses financial risks, potentially limiting operational flexibility and increasing vulnerability to economic downturns.

Negative Stockholders' Equity

Negative equity reflects financial instability, which could hinder investment capacity and shareholder confidence in the long term.

Increased Operating Expenses

Rising expenses can pressure margins and profitability, necessitating efficiency improvements to sustain long-term growth.

Wix Business Overview & Revenue Model

Company Description

Wix.com Ltd. is a cloud-based web development platform that enables users to create and manage websites without needing extensive coding knowledge. Founded in 2006, Wix serves a diverse range of sectors, including small businesses, entrepreneurs, and individuals, providing tools for website design, e-commerce, and online marketing. Core products include a drag-and-drop website builder, hosting services, and integrated solutions for online stores, bookings, and customer engagement.

How the Company Makes Money

Wix 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 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

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

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

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 Price: 140.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 140.65 is above the 20-day moving average (MA) of 139.63, below the 50-day MA of 150.82, and below the 200-day MA of 167.72, indicating a neutral trend. The MACD of -4.86 indicates Negative momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 76.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WIX.

Wix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOX	―	$4.73B	26.21	163.44%	―	6.29%	62.03%
DOCN	―	$3.59B	31.72	―	―	13.29%	79.98%
CFLT	―	$8.31B	―	-29.62%	―	21.58%	18.88%
S	―	$5.89B	―	-27.34%	―	25.39%	-42.90%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DBX	―	$7.68B	17.81	―	―	-0.04%	-5.07%
WIX	―	$7.83B	50.62	―	―	13.04%	126.85%

Wix Corporate Events

Wix Completes $1.15 Billion Convertible Notes Offering

On September 11, 2025, Wix.com Ltd. successfully closed a private offering of $1.15 billion in 0.00% Convertible Senior Notes due 2030. This financial maneuver, which included a $150 million exercise option by initial purchasers, aims to support the company’s strategic initiatives such as share repurchases and potential acquisitions. The issuance of these notes, which are convertible into ordinary shares, reflects Wix’s efforts to strengthen its financial position and enhance shareholder value.

Wix Upsizes Convertible Senior Notes Offering to $1 Billion

On September 8, 2025, Wix.com Ltd. announced the pricing of a $1.0 billion offering of 0.00% convertible senior notes due 2030, upsized from an initial $750 million. The proceeds will be used for capped call transactions, share repurchases, and general corporate purposes, potentially affecting the market price of Wix’s shares and notes.

Wix Announces $750 Million Convertible Notes Offering

On September 8, 2025, Wix.com Ltd. announced a proposed private offering of $750 million in convertible senior notes due in 2030, aimed at qualified institutional buyers. This strategic financial move is expected to support Wix’s liquidity and capital resources, with proceeds potentially used for share repurchases and acquisitions, enhancing its market position and shareholder value.

Wix Expands Share Repurchase Program by $200 Million

On August 11, 2025, Wix.com Ltd. announced a $200 million increase to its share repurchase program, bringing the total potential repurchase amount to $500 million. This strategic move is subject to Israeli law requirements and market conditions, and it reflects the company’s commitment to enhancing shareholder value and strengthening its market position.

Wix Reports Strong Q2 2025 Results and Expands Market with Base44 Acquisition

On August 6, 2025, Wix.com Ltd. announced its second quarter 2025 financial results, highlighting a 12% year-over-year increase in total revenue to $489.9 million. The company also reported significant growth in new cohort bookings, driven by strong demand for AI-powered online creation and the strategic acquisition of Base44, which expands Wix’s market into application development. This acquisition is expected to contribute significantly to Wix’s revenue growth, with Base44 projected to reach $40 to $50 million in ARR by year-end. Wix’s robust performance and strategic initiatives, including AI and market expansion, are laying the groundwork for continued growth in 2026 and beyond.