Wix Acquires AI Firm Base44, User Growth Surges Over 700%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 25 2026
0mins
Should l Buy WIX?
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.
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Analyst Views on WIX
Wall Street analysts forecast WIX stock price to rise
19 Analyst Rating
18 Buy
1 Hold
0 Sell
Strong Buy
Current: 90.500
Low
135.00
Averages
172.24
High
210.00
Current: 90.500
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.
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- Tender Offer Results: Wix.com announced preliminary results of its modified Dutch Auction tender offer, with 18,718,009 shares successfully tendered by April 1, 2026, representing approximately 31.6% of outstanding shares.
- Purchase Price and Cost: The purchase price is set at $92.00 per share, leading to an expected total cost of about $1.722 billion, excluding related fees, reflecting the company's strategy to return value to shareholders.
- Transaction Management and Advisory: J.P. Morgan Securities LLC acted as the deal manager for the tender offer, ensuring smooth execution while providing advisory services to address shareholder inquiries, thereby enhancing transparency.
- Future Outlook and Risks: Wix noted that the final results of the tender offer are subject to confirmation and may be impacted by delivery delays and other risk factors, emphasizing the company's cautious approach in an uncertain environment.
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- Market Reaction: Following the buyback announcement, Wix.com shares rose approximately 1.5% in premarket trading, indicating a positive market response to the buyback plan, although overall market sentiment regarding its future growth prospects remains cautious.
- Analyst Downgrade: UBS downgraded Wix.com from Buy to Neutral, citing concerns that its core business growth is expected to decelerate from 12% in 2026 to around 8%, which could impact the company's long-term growth potential.
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- Monthly Gain: The stock has surged by 20.98% over the past month, significantly outperforming the Computer and Technology sector's loss of 9.45% and the S&P 500's loss of 7.64%, highlighting its relative strength in the industry.
- Earnings Expectations: The upcoming earnings report is expected to show an EPS of $1.32, reflecting a 14.84% decline year-over-year, while revenue is projected to reach $543.79 million, indicating a 14.81% increase, showcasing the company's revenue growth potential.
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- Oil Price Surge: WTI crude oil prices surged over 5% due to fears surrounding the Iran conflict, which not only exacerbates inflation expectations but may also compel the Federal Reserve to tighten monetary policy, impacting overall economic growth.
- Consumer Sentiment Drop: The University of Michigan's consumer sentiment index was revised down to 53.3 from 55.5, below the expected 54.0, reflecting a pessimistic outlook among consumers regarding future economic conditions, potentially suppressing consumer spending.
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- Tender Offer Results: Wix.com announced preliminary results of its modified Dutch Auction tender offer, with 18,718,009 shares successfully tendered by April 1, 2026, representing approximately 31.6% of outstanding shares.
- Purchase Price and Cost: The purchase price is set at $92.00 per share, leading to an expected total cost of about $1.722 billion, excluding related fees, reflecting the company's strategy to return value to shareholders.
- Transaction Management and Advisory: J.P. Morgan Securities LLC acted as the deal manager for the tender offer, ensuring smooth execution while providing advisory services to address shareholder inquiries, thereby enhancing transparency.
- Future Outlook and Risks: Wix noted that the final results of the tender offer are subject to confirmation and may be impacted by delivery delays and other risk factors, emphasizing the company's cautious approach in an uncertain environment.
See More
Market Watch: Oil Price Surge and Stock Market Turmoil
- Oil Price Surge Impact: Following President Trump's address on the Iran war, which raised escalation concerns, U.S. crude benchmark WTI surged 9% to $109 a barrel, putting downward pressure on the stock market and negatively affecting investor sentiment.
- Bank of America Upgrades Vale: Bank of America upgraded Vale from hold to buy, suggesting that now is an attractive entry point for investors in the iron ore producer, despite Vale's stock dropping nearly 7% since the Iran conflict began, while iron ore prices have risen about 8%.
- Wix's Outlook Downgraded: UBS downgraded Wix from buy to hold, with analysts believing its 2026 outlook indicates a slowdown in core business growth from 12% last year to 8% this year, and despite efforts to integrate AI capabilities, the company remains vulnerable to disruption by AI.
- Cheniere Energy Price Target Increased: Citigroup raised Cheniere Energy's price target from $280 to $330 while reiterating its buy rating, as supply disruptions in the Middle East could benefit U.S. LNG exports long-term, with shares up about 17% since the war began.
See More
Wix.com Plans to Buy Back 18.7 Million Shares
- Buyback Plan: Wix.com announced its intention to repurchase approximately 18.7 million shares at $92 each, with an estimated total expenditure of $1.722 billion, which will reduce its outstanding shares by about 31.6%, thereby enhancing earnings per share and shareholder value.
- Market Reaction: Following the buyback announcement, Wix.com shares rose approximately 1.5% in premarket trading, indicating a positive market response to the buyback plan, although overall market sentiment regarding its future growth prospects remains cautious.
- Analyst Downgrade: UBS downgraded Wix.com from Buy to Neutral, citing concerns that its core business growth is expected to decelerate from 12% in 2026 to around 8%, which could impact the company's long-term growth potential.
- Investment Uncertainty: Analyst Christopher Zhang noted that the slowdown in core business growth, combined with heavy investments and uncertainty surrounding Base44, will likely leave Wix.com performing modestly below the 'Rule of 40' over the next three years, potentially exerting negative pressure on its stock price.
See More
Wix.com Stock Rises 2.61% Amid Earnings Anticipation
- Stock Performance: Wix.com closed at $90.07, up 2.61% from the previous session, although this increase was less than the S&P 500's gain of 2.91%, indicating a cautious market sentiment towards the stock.
- Monthly Gain: The stock has surged by 20.98% over the past month, significantly outperforming the Computer and Technology sector's loss of 9.45% and the S&P 500's loss of 7.64%, highlighting its relative strength in the industry.
- Earnings Expectations: The upcoming earnings report is expected to show an EPS of $1.32, reflecting a 14.84% decline year-over-year, while revenue is projected to reach $543.79 million, indicating a 14.81% increase, showcasing the company's revenue growth potential.
- Valuation Analysis: Wix.com holds a forward P/E ratio of 14, slightly above the industry average of 12.14, with a PEG ratio of 0.67, suggesting that its future earnings growth potential may be undervalued, potentially attracting investor interest.
See More
Market Cap Game Show: Emily vs. Bill Showdown
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- Championship Battle: Emily, the reigning Market Cap Game Show world champion, showcased her investment analysis skills against Bill, ultimately winning with a score of 7 to 3, solidifying her champion status.
- Investor Education: The show utilized a fun game format to help listeners understand the significance of market caps, increasing public interest in investing and promoting financial literacy.
- Industry Insights: Analysts discussed the market performance of various companies, including Adyen and PayCom, providing deep insights into current market dynamics to assist investors in making informed decisions.
See More
US Stocks Plunge as Oil Prices Surge Amid Iran Conflict
- Market Decline: The S&P 500 index fell by 1.67%, marking a 7-month low, while the Nasdaq 100 and Dow Jones Industrial Average dropped by 1.93% and 1.73%, respectively, indicating heightened concerns over economic slowdown.
- Oil Price Surge: WTI crude oil prices surged over 5% due to fears surrounding the Iran conflict, which not only exacerbates inflation expectations but may also compel the Federal Reserve to tighten monetary policy, impacting overall economic growth.
- Consumer Sentiment Drop: The University of Michigan's consumer sentiment index was revised down to 53.3 from 55.5, below the expected 54.0, reflecting a pessimistic outlook among consumers regarding future economic conditions, potentially suppressing consumer spending.
- Escalating US-China Trade Tensions: China launched investigations into US trade practices targeting restrictions on Chinese goods, which could further disrupt global supply chains and increase market uncertainty.
See More
