Stock Price & Analysis

Based on the recent data and market analysis, here's a concise assessment of WIX stock:

Technical Analysis

The stock is currently showing signs of consolidation after reaching $223.70 on February 14th. The recent price action indicates a slight pullback from recent highs, with the stock finding support around the Fibonacci level of $218.90.

Fundamental Strengths

• Strong bookings growth of 16% year-over-year in Q3 2024
• Partner revenue grew 30% y/y to $155 million
• Pro forma operating margins improved to 20%, up 5 points y/y
• Added nearly 5 million new users in Q3 2024, largest cohort since 2020

Recent Developments

• Completed $200 million share repurchase program in January 2025, buying back 868,026 shares at average price of $230.41
• Wells Fargo initiated coverage with Underweight rating and $208 price target, citing concerns about price increase contributions to growth

Current Valuation

Recommendation

SELL - The current technical setup shows weakening momentum, and with the stock trading near recent highs, there are several factors suggesting limited upside:

1. Recent analyst downgrades and valuation concerns
2. Price increases have been a significant driver of growth, which may not be sustainable
3. Technical indicators showing overbought conditions
4. Stock is trading above most Wall Street price targets

Based on the provided data and market analysis, here's the price prediction for WIX stock in 2025:

WIX stock is projected to reach $275-285 by end of 2025, driven by continued AI investments and strong growth in Self Creators and Partners segments. The stock has shown robust momentum with an 87% return over the past year, and analysts at Citi maintain a Buy rating with a $275 price target.

However, Wells Fargo recently initiated coverage with an Underweight rating and $208 price target, citing risks to consensus estimates as the contribution from price increases wanes. This creates a bearish scenario floor around $200-210.

The technical analysis shows WIX is currently trading near its Fibonacci resistance level of $231.04, with strong support at $218.90. The RSI-14 reading of 45.29 indicates neutral momentum, suggesting potential for both upside and downside moves in the near term.

The S1 support level for WIX Stock is $202.82 ,The R1 resistant level for WIX Stock is $235.18.

As of the end of day on 2025-02-21, the price of WIX Stock was $197.21.

The target price for WIX Stock according to analyst rating is 242.76, with the highest price target at 300.00 and the lowest at 205.00. Analysts have a Strong Buy rating on WIX Stock overall.

The market cap of WIX is $10.9B.

Based on the provided data and recent market analysis, WIX appears to be overvalued at its current price of $223.70. The stock trades at an extremely high forward P/E ratio of 216.82 and EV/EBITDA of 188.81, significantly above industry averages. Technical indicators show bearish signals with RSI at 45.29 and negative MACD divergence, suggesting potential downward pressure. The company's recent revenue growth of 13% year-over-year and bookings growth of 16% don't justify such premium multiples compared to peers. The stock's price has risen over 75% in the past year, pushing valuations to unsustainable levels.

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.

Based on the provided data and recent market analysis, here's a prediction for WIX stock price in 2030:

WIX stock is projected to reach $375-400 by 2030, driven by continued strong bookings growth and partner revenue expansion which grew 30% year-over-year. The company's focus on AI offerings and Studio solutions, with WIX Studio accounting for 75% of new partner bookings, positions it well for sustained growth over the next 5 years.

The stock's current technical indicators and fundamental metrics suggest a bullish long-term trajectory, supported by accelerating bookings growth of 16% year-over-year and improved user acquisition trends showing the largest cohort additions since 2020.

WIX has a total of 4414 employees.