Wix Acquires AI Firm Base44, User Growth Surges Over 700%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Significant User Growth: Wix's acquisition of AI firm Base44 has led to a remarkable increase in active users from approximately 280,000 to 2 million within months, showcasing its strong growth potential in AI-driven programming.
- Market Expansion Strategy: The launch of Wix Studio in 2023, aimed at providing more powerful tools for agencies and freelancers, has driven a 24% year-over-year growth in its partners segment, further solidifying its leadership in the SaaS market.
- High-End Service Focus: Despite incurring high operating and scaling costs for its AI services, Wix aims to achieve strong revenue growth by offering more premium services, with expectations of rising operating margins in the long run.
- Attractive Stock Valuation: Currently trading at just 13 times forward earnings expectations, Wix's stock presents an absolute bargain for investors looking to capitalize on the rapid advancements in AI technology.
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: 84.560
Low
135.00
Averages
172.24
High
210.00
Current: 84.560
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.
