Wix Acquires AI Company Base44, User Growth Surges to 2 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: NASDAQ.COM
- Significant User Growth: Wix's acquisition of AI company Base44 has led to a remarkable increase in active users from approximately 280,000 to 2 million within months, demonstrating its strong market appeal and growth potential.
- Market Share Expansion: The launch of Wix Studio in 2023, targeting agencies and freelancers, has driven a 24% year-over-year growth in its partners segment, further solidifying its leadership in the SaaS website building space.
- High Cost Challenges: While Wix faces high operating and scaling costs for its AI services, the massive addressable market presents an opportunity for strong revenue growth and improved long-term operating margins if it can successfully execute its strategy.
- Attractive Stock Valuation: Currently trading at just 13 times forward earnings expectations, Wix's stock presents significant investment value, and despite the competitive threat from AI tools, its robust marketing capabilities and customer retention provide a solid foundation for future growth.
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Analyst Views on WIX
Wall Street analysts forecast WIX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WIX is 172.24 USD with a low forecast of 135.00 USD and a high forecast of 210.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
18 Buy
1 Hold
0 Sell
Strong Buy
Current: 87.960
Low
135.00
Averages
172.24
High
210.00
Current: 87.960
Low
135.00
Averages
172.24
High
210.00
About WIX
Wix.com Ltd. (Wix) is an Israel-based company engaged in the provision of a web development platform enabling businesses and organizations to take businesses, brands, and workflow online. The Company provides solutions that business owners can use to operate various aspects of their business online, such as selling goods, taking reservations, and scheduling and confirming appointments. These applications provide Wix registered users a bespoke front-end for customers visiting their Website, as well as a back-end management dashboard. The Company has developed these software applications for businesses in specific verticals, including retail and online stores, service providers, hotel and property management, music, and restaurants. These vertical applications are integrated into the Company's Website templates or can be installed on any existing Website and set up by the user and without the need to write code.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Wix.com Approves $2 Billion Share Buyback Program
- Share Buyback Program: Wix.com’s board has approved a share repurchase program of up to $2 billion, expected to be executed over fiscal years 2026 and 2027, aimed at enhancing shareholder value amid a nearly 62% decline in stock price over the past year.
- Funding Sources: The company plans to fund the buybacks through cash on hand, future operating cash flow, or additional capital raising, including debt or equity-linked instruments, demonstrating its strong cash generation capabilities.
- Market Reaction: Despite a nearly 7% rise in stock price following the buyback announcement, retail sentiment on Stocktwits shifted from 'bullish' to 'neutral', indicating cautious investor sentiment regarding future performance.
- New Product Launch: Last week, Wix.com launched its flagship AI website builder, Wix Harmony, and plans to showcase it in a Super Bowl commercial on February 8, 2026, which is expected to further enhance brand visibility and market share.
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Wix Announces $2 Billion Share Buyback Program
- Buyback Program Initiated: Wix's Board of Directors has authorized a two-year share repurchase program of up to $2 billion, reflecting confidence in the company's strong cash flow and commitment to enhancing shareholder value, which is expected to boost positive sentiment around the stock.
- Funding Sources Defined: The buyback will be financed through cash on hand and future cash generated from operations, with Wix holding $889.616 million in cash and cash equivalents as of September 30, 2025, ensuring the sustainability of the repurchase initiative.
- Mixed Technical Indicators: Wix's stock is currently trading 4.9% below its 20-day simple moving average but 24.3% below its 100-day SMA, indicating short-term strength while struggling in the long term, with shares down 64.35% over the past 12 months.
- Analyst Expectations: Investors are looking forward to the upcoming earnings report on February 18, 2026, with an EPS estimate of $0.98 (down from $1.93 YoY) and a revenue estimate of $527.83 million (up from $460.45 million YoY), reflecting cautious optimism about Wix's future.
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