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

We came across a bullish thesis on Wix.com Ltd.  on TrendInvest’s Substack by Ritmus. In this article, we will summarize the bulls’ thesis on WIX. Wix.com Ltd. 's share was trading at $169.45 as of September 11th. WIX’s trailing and forward P/E were 60.09 and 21.01 respectively according to Yahoo Finance.

Wix has emerged as a compelling yet disciplined Buy opportunity following a multi-agent consensus analysis that balances bullish growth drivers with technical caution. The company recently delivered an earnings surprise and raised full-year guidance, underscoring management’s ability to execute in a competitive environment. Its launch of AI-driven tools Kleo and Astro strengthens product differentiation, supporting further share gains in a crowded web-builder market.

Institutional conviction is evident through a $200 million buyback and analyst target upgrades toward $200–$210, signaling confidence at current levels. Favorable macro tailwinds, including potential Fed rate cuts and continued digitalization of small businesses, add further support to the growth narrative.

Bearish arguments highlight weak technicals, with the 50-day SMA below the 200-day and negative MACD momentum, alongside ongoing competition from Squarespace, Shopify, and WordPress. Macroeconomic headwinds such as inflation and cautious small-business spending pose risks to growth. To mitigate these, the strategy adopts a phased entry, initially on a pullback near $150–$155 and subsequently on a breakout above $165, paired with tight stop-loss discipline and trailing protections to guard against volatility.

Monitoring milestones include quarterly checks on AI tool adoption, subscriptions, and gross margins, alongside technical reviews of moving averages and macroeconomic signals. With a 12–18 month horizon, the stock is expected to reach $200–$210, where partial profit-taking would be prudent. Even with short-term bearish signals, Wix’s innovation, institutional support, and structured risk management present a favorable risk/reward skew, making it an attractive Buy for investors seeking balanced exposure to long-term digital growth.

Previously we covered a bullish thesis on Wix.com Ltd. (WIX) by The Dutch Investors in November 2024, which highlighted switching costs, economies of scale, and network effects as key drivers of customer retention and long-term growth. The company’s stock price has depreciated approximately by 6% since our coverage. This is because valuation concerns limited upside. The thesis still stands as Ritmus shares a similar view but emphasizes AI-driven tools and institutional buybacks.

Wix.com Ltd.  is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held WIX at the end of the second quarter which was 50 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.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None.