WIX Should I Buy
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Given the user's beginner investment level, long-term strategy, and available capital, Wix.com Ltd (WIX) is not a strong buy at the moment. The stock's technical indicators are bearish, and the financial performance shows declining net income and EPS despite revenue growth. While analysts maintain positive long-term outlooks, the mixed sentiment and lack of significant trading signals suggest holding off on immediate investment.
The stock is currently in a bearish trend with the MACD histogram at -0.562 (below 0), RSI at 24.004 (neutral), and moving averages showing a bearish alignment (SMA_200 > SMA_20 > SMA_5). The price is near the key support level of 69.405, with resistance levels at 76.69 and 83.974.
The acquisition of Base44 for $80 million could enhance AI-driven development and improve long-term growth. Analysts see potential upside in bookings and revenue, with mid-20% free cash flow margins as a floor. The launch of Wix Harmony is expected to strengthen its AI-powered website builder capabilities.
The stock price has declined due to concerns over compressed software multiples, rising competition, and margin trajectory. Analysts have lowered price targets, and sentiment remains mixed. Financial performance shows a significant decline in net income (-102.20% YoY) and EPS (-102.17% YoY).
In Q3 2025, revenue increased by 13.61% YoY to $505.19 million. However, net income dropped significantly to -$589,000 (-102.20% YoY), and EPS also declined to -0.01 (-102.17% YoY). Gross margin improved slightly to 68.34%.
Analysts maintain mostly positive ratings with lowered price targets. Oppenheimer, Citizens, Barclays, and others have reduced their targets but kept Outperform or Overweight ratings. Analysts highlight concerns over AI-related costs and margin pressure but see long-term growth potential driven by Base44 and Wix Harmony.
