Wix.com Acquires Base44 for $80 Million to Enhance User Experience
Wix.com Ltd. has seen its stock price drop by 5.48% as it hits a 52-week low amid broader market declines, with the Nasdaq-100 down 1.70% and the S&P 500 down 1.21%.
The recent acquisition of Base44 for approximately $80 million is expected to significantly enhance Wix's user experience through AI-driven development, attracting more non-technical users and expanding market share. Despite a 48.31% decline in Wix's stock price since November 2024, analysts believe these risks are largely priced in, with the upcoming Q3 2025 earnings call potentially serving as a catalyst for re-evaluation of the company's prospects.
This acquisition positions Wix to drive revenue growth from its existing user base and create new upsell opportunities, further enhancing its average revenue per user (ARPU). While challenges in AI competition persist, Wix's strong competitive advantages and scale-driven efficiencies continue to make it an attractive option for long-term growth.
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- Overreaction in the Market: Wix.com shares have recently fallen to $67.64, with a market cap of just $3.8 billion, as investor fears of AI disrupting the software industry led to a 20% drop, yet this reaction is deemed misguided, potentially setting the stage for significant returns over the next decade.
- Strong Revenue Growth: Wix reported a 14% year-over-year revenue increase last quarter, reaching $500 million, with expectations for $600 million in free cash flow by 2025, demonstrating the company's resilience and growth potential in the AI era.
- Acquisition-Driven Growth: The acquisition of Base44, a mobile app builder, is projected to generate $50 million in annual recurring revenue by 2025, a substantial increase from under $1 million at the time of acquisition, further solidifying Wix's leadership in low-code development.
- Confidence Boost from Buyback Plan: Wix announced a $2 billion share repurchase program, representing over half its market value, which, if aggressively pursued, could significantly reduce outstanding shares and enhance shareholder returns, thereby strengthening market confidence in its long-term investment value.
- Integrated Financial and Website Management Tools: The partnership between Wix and Intuit allows Wix users to access QuickBooks directly on the Intuit platform, enhancing the efficiency of business sales, finances, and operations, thereby enabling small businesses to operate and scale more effectively.
- Increased Financial Transparency: With the integration of QuickBooks Online, millions of Wix users gain deeper visibility into profitability, cash flow, and estimated tax liabilities, strengthening the foundation for financial decision-making.
- Automated Accounting Capabilities: The newly introduced AI-driven tools provide Wix users with automated accounting functions, helping businesses optimize online sales and reduce administrative workload, thus improving overall operational efficiency.
- Enhanced Marketing Efforts: Wix users can connect their CRM data with Intuit Mailchimp, strengthening marketing initiatives to drive customer engagement and revenue growth, further enhancing the competitive edge of small businesses.
- Portfolio Restructuring: Billionaire hedge fund manager Daniel Loeb reshuffled his Third Point LLC portfolio in Q4 2025, adding several new consumer and international investments, indicating a pursuit of market diversification.
- Reduced Mega-Cap Exposure: In the latest Form 13F filing, Loeb trimmed stakes in select mega-cap and semiconductor names, reflecting a cautious stance towards these sectors, possibly due to concerns over market volatility.
- New Buy Highlights: Among the new acquisitions, Loeb focused on consumer goods and international markets, likely aiming to capture opportunities arising from global economic recovery and enhance the growth potential of his portfolio.
- Regulatory Transparency: Loeb's portfolio changes are disclosed through the 13F filing as required by the U.S. Securities and Exchange Commission, increasing transparency for the hedge fund and helping investors better understand its investment strategies and market outlook.
- Funding Achievement: Render successfully raised $100 million in a highly competitive cloud computing market, achieving a $1.5 billion valuation, reflecting strong investor confidence in its growth potential, particularly amid surging AI demand.
- User Base Expansion: With revenue growth exceeding 100%, Render now boasts over 4.5 million developers using its tools, which not only demonstrates the market appeal of its products but also lays a solid foundation for future expansion.
- Strategic Technology Shift: With the new funding, Render plans to hire additional technical staff to develop new features while testing the use of its own servers to reduce costs and enhance customer efficiency, particularly for clients like Alibaba and Shopify.
- Market Competitive Advantage: As Heroku halts new feature development, Render's appeal as a mature alternative increases, especially with support from major clients like OpenAI, while recommendations from ChatGPT further drive business growth.
- Funding Achievement: Render announced a successful $100 million funding round, achieving a valuation of $1.5 billion, reflecting strong investor confidence in its cloud infrastructure solutions and expected to further drive market expansion and technological innovation.
- Rapid User Growth: With revenue growth exceeding 100%, Render now boasts over 4.5 million developers using its tools, significantly enhancing its position in the highly competitive cloud computing market.
- Strategic Technology Shift: Render is testing the use of its own servers to reduce costs and improve service efficiency, a strategic pivot that could provide customers with more competitive pricing while enhancing the company's control over its infrastructure.
- Intensifying Market Competition: As OpenAI's ChatGPT drives increased demand for cloud computing, Render emerges as a beneficiary, particularly as companies seek mature alternatives to Heroku, underscoring its importance and potential in the industry.
- Wix's Growth Potential: Wix.com has seen its stock price drop nearly 70% over the past year, yet its latest quarter shows revenue growth accelerating to 14%, indicating that AI tools are not undermining its website development business but may actually expand its market share, making the current price of $72 an attractive entry point with Wall Street's target price at $151.
- Acquisition Boosts Development: Wix's acquisition of startup Base44, which focuses on no-code mobile app development, is projected to achieve $50 million in annual recurring revenue by the end of 2025, further enhancing Wix's product offerings and driving future growth.
- Adobe's Undervalued Stock: Adobe's stock has fallen nearly 45% over the past year, currently priced at $258, significantly below its average target price of $429; despite facing AI competition, the company posted record revenue of $6.2 billion last quarter, demonstrating strong market demand and ongoing customer growth potential.
- Market Confidence and Investment Timing: While AI poses competitive threats, existing customers' trust in Wix and Adobe makes these software solutions hard to replace, and the current undervaluation presents a great buying opportunity for investors, especially during the stock price dips of Adobe and Wix.










