Wix Stock Surges Over 100% in Two Months Amid Base44 Growth and AI Expansion
Wix's stock has more than doubled in price over the past two months, rising from a near-decade low of just over $40 to above $82 per share, valuing the internet company at approximately $3.4 billion. Despite this rebound, the stock remains below the $92 per share level at which Wix repurchased over 30% of its shares earlier this year, spending more than $1.6 billion.
Wix, led by CEO Avishai Abrahami, enables users to create and manage websites and recently acquired Base44, a company specializing in Vibe Coding, which allows digital creations through natural language without coding. Base44 has become Wix's main growth engine since the acquisition. The company faced significant challenges earlier this year, including a sharp stock decline amid concerns about the SaaS sector and AI's impact on software business models. Wix responded with a major workforce reduction of about 1,000 employees (20%) and lowered its annual revenue growth forecast from around 15% to a lower double-digit rate.
However, Wix's recent quarterly results exceeded analyst expectations, with revenues growing 14.9% to $563 million. Although accounting rules (GAAP) showed a net loss of $76.4 million due to restructuring and Base44-related expenses, the non-GAAP profit was $68.2 million, surpassing market forecasts. Base44's founder and CEO, Maor Shlomo, has been pivotal in this turnaround, with the company reaching $200 million in annual recurring revenue (ARR) just five months after hitting $100 million. Wix plans to continue investing in Base44's marketing and sales to expand market share, projecting Base44's non-GAAP gross margin to reach about 60% by mid-2026, up from zero at the start of the year.
Wall Street sentiment is cautiously optimistic, with 11 out of 24 analysts rating Wix positively and only one negative, though the average price target remains slightly below the current Nasdaq price. Many analyst ratings predate the recent stock surge, suggesting potential for updated forecasts. Wix also recently launched AI agents for enterprises, further signaling its strategic pivot toward AI-driven growth.
