Wix.com Ltd. (WIX): A Bull Case Theory

We came across a bullish thesis on Wix.com Ltd. on valueinvesting subreddit by SniperPearl. In this article, we will summarize the bulls’ thesis on WIX. Wix.com Ltd. 's share was trading at $148.45 as of July 29^th. WIX’s trailing and forward P/E were 59.72 and 20.24, respectively according to Yahoo Finance.

Wix.com (WIX) has drawn renewed attention following its recent share price pullback, now trading around $150 with a market cap of $8.5 billion. On 2025 estimates, it trades at ~4x EV/Sales and 14x EV/FCF, a discount to peer GoDaddy (GDDY), which trades at 5.6x EV/Sales and 17x EV/FCF despite slower AI adoption. The market appears to undervalue WIX’s accelerating AI buildout, where it is leading the web development space in integrating AI-driven tools, positioning itself ahead of competitors like GDDY.

With earnings scheduled for early August, investor focus is on whether WIX can deliver a “beat and raise” quarter that could catalyze a multiple re-rating. A re-rate in line with GDDY’s valuation range of 5.5–6x sales implies a share price of $220–240, representing meaningful upside. A probability-weighted scenario framework suggests an expected post-earnings return of about 12%, with a bull case ($230, 20% probability) on upside surprise, a base case ($165, 50%) assuming in-line results, and a bear case ($135, 30%) if results disappoint or guidance is cautious.

Even in the base case, WIX remains attractively positioned given its leading AI initiatives and discounted valuation relative to peers. The combination of a clear catalyst in the upcoming earnings report, a compelling valuation gap, and structural growth from AI integration offers a favorable risk/reward profile. If the company executes, it could see a swift multiple expansion, bringing shares closer to peer levels, while downside risk appears cushioned by underlying fundamentals and a growing AI-driven competitive edge.

Previously, we covered a bullish thesis on Wix.com Ltd. by The Dutch Investors in November 2024, highlighting Wix’s scale-driven moats and durable growth. The stock has fallen about 18% since, as valuation concerns capped upside. The thesis holds given structural strengths. SniperPearl shares a similar view but emphasizes near-term re-rating potential from AI-driven product upgrades and improving margins.

Wix.com Ltd. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held WIX at the end of the first quarter which was 52 in the previous quarter. While we acknowledge the potential of WIX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.