Wix.com Acquires Base 44, Projected $50M Annual Revenue by 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2026
0mins
Should l Buy WIX?
Source: NASDAQ.COM
- AI Threat Emergence: Wix.com is facing a potential threat from AI in the website-building sector, leading to a 51.6% drop in its stock price in 2025, reflecting investor concerns over competitive advantages and customer retention.
- Acquisition Accelerates Growth: The acquisition of Base 44 is rapidly growing, with projected annual revenue reaching $50 million by 2025, which will help Wix raise its overall revenue guidance to around $2 billion.
- Strong Cash Flow Performance: Despite challenges, Wix.com reported over $500 million in free cash flow over the past twelve months, indicating high profitability in its website software business and laying the groundwork for future shareholder returns.
- Market Valuation Decline: With a market cap of $5 billion and a price-to-earnings ratio below 10x, Wix.com is positioned to return cash to shareholders through stock buybacks, making it an attractive buy opportunity at its current undervalued price.
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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.
- Earnings Growth: Wix's Q4 revenue grew 14% year-over-year to $524 million, demonstrating stability in its core business and rapid growth from the Base44 application, which achieved $50 million in annual recurring revenue in under a year, enhancing its competitive position.
- Share Buyback Plan: Wix announced a Dutch Tender Offer to repurchase 31.6% of its outstanding shares at $92 each, despite the current stock price being $82, indicating management's confidence in future stock performance and providing a potential buying opportunity for investors.
- Market Reaction: Although Wix's stock surged 27.8% in March, it has fallen since early April due to concerns over potential disruptions from artificial intelligence, reflecting investor caution regarding AI risks that could impact future investment decisions.
- Cash Flow Performance: With a market cap of approximately $4.36 billion before the buyback, Wix's valuation is expected to drop to around $3 billion post-repurchase, while generating $600 million in free cash flow over the past year, showcasing its financial health and growth potential.
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- Significant Buyback: Wix.com successfully repurchased 17,577,250 ordinary shares in its 'modified Dutch Auction' tender offer at a price of $92.00 per share, totaling approximately $1.617 billion, demonstrating strong confidence in its intrinsic value.
- Market Impact: The repurchased shares represent 29.7% of the outstanding shares as of April 1, 2026, which not only enhances earnings per share but may also strengthen investor trust in the company's long-term strategy, further solidifying its market position.
- Positive Management Commentary: Nir Zohar, President and Co-founder of Wix, stated that the buyback reflects a shared conviction among shareholders in the company's long-term strategy, indicating its leadership capability and market adaptability in the AI era.
- Transparent Deal Management: J.P. Morgan Securities LLC acted as the deal manager, ensuring a smooth buyback process, while shareholders can contact D.F. King & Co., Inc. for inquiries, highlighting the company's commitment to shareholder communication.
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- Strong Earnings Performance: Wix.com reported Q4 revenue of $524 million, a 14% year-over-year increase, demonstrating the stability of its core business and the rapid growth potential of its Base44 application, which has reached $50 million in annual recurring revenue in under a year, boosting market confidence.
- Share Buyback Program: The company plans to repurchase 31.6% of its outstanding shares at $92 per share through a Dutch Tender Offer, aimed at enhancing earnings per share by reducing the number of shares in circulation, thereby stabilizing the stock price and bolstering investor confidence.
- Positive Market Reaction: Following the earnings report, Wix's stock surged from approximately $70 to $90, reflecting investor optimism about the company's growth potential, although the current price has dipped to $82, still below the management's perceived fair buyback price.
- AI Risks and Opportunities: While the market expresses concerns about potential disruptions from artificial intelligence to Wix's customer base, the company is actively launching its own AI website-building tool, Wix Harmony, indicating its commitment to competing in the AI space, which could provide opportunities for market expansion in the future.
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- Buyback Scale: Wix.com executed a modified Dutch auction tender offer, repurchasing 17,577,250 shares at $92 each for a total cost of approximately $1.617 billion, reflecting the company's confidence in its long-term strategy.
- Market Impact: The repurchased shares represent about 29.7% of the company's outstanding shares as of April 1, allowing Wix to buy back nearly 30% of its market capitalization, aimed at returning value to shareholders and boosting market confidence.
- Stock Price Fluctuation: Following the buyback announcement, Wix.com's stock price fell by 9.45% to $81.95 on Nasdaq, but in after-hours trading, it slightly increased by 0.10% to $82.03, indicating a mixed market reaction to the buyback.
- Strategic Significance: This buyback not only strengthens shareholder trust but may also enhance earnings per share by reducing the number of outstanding shares, thereby laying a foundation for future growth.
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- 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.
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- 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.
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- 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.
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