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

We came across a bullish thesis on Wix.com Ltd. on Valueinvestorsclub.com by tyro. In this article, we will summarize the bulls’ thesis on WIX. Wix.com Ltd.'s share was trading at $95.19 as of December 1st. WIX’s trailing and forward P/E were 40.56 and 12.64 respectively according to Yahoo Finance.

Wix.com Ltd. (WIX) operates a leading no-code website building platform that enables users to design and manage websites without technical expertise. As of 2024, Wix had 282 million registered users and 6.2 million paying subscribers, with growth driven by its intuitive drag-and-drop interface and expanding professional user base. The global Content Management Software (CMS) market remains dominated by WordPress, but Wix continues to gain share alongside Shopify, capitalizing on the no-code DIY trend.

Despite a temporary dip in user conversion from 2.7–2.8% in 2022 to 2.2% in 2024 due to price adjustments and churn among hobbyist users, overall user growth remains solid at 7% YoY, with stability expected as pricing effects normalize. Particularly strong momentum is coming from professional and agency-driven partnerships, growing around 30% annually, reflecting the success of Wix Studio and enhanced community engagement initiatives.

ARPU has been rising roughly 10% annually for nearly a decade, powered by subscription price hikes, growing payments adoption, and domain registration revenue. Payments now contribute meaningfully with 20% annual growth and a 1.75% take rate on $12.3 billion in GMV, double that of Squarespace. Wix’s acquisition of Base44, an LLM-powered “vibe coding” startup, marks a major TAM expansion opportunity.

Acquired for $80 million, Base44 is on track for $40–50 million ARR in 2025, adding 2–3% to Wix’s organic growth. Trading at a 6.5% free cash flow yield and 3.8x NTM revenue, Wix appears undervalued relative to Squarespace’s 5x takeout multiple. With accelerating innovation, expanding professional adoption, and a potential re-rating toward 5–6x NTM revenue, Wix offers 30–50% upside, the key catalyst being revenue acceleration in 2026.

Previously we covered a bullish thesis on Wix.com Ltd. by The Dutch Investors in November 2024, which highlighted the company’s strong moats and scalable platform driving long-term growth. The company’s stock price has depreciated approximately by 47.11% since our coverage. This is because the growth thesis has not yet played out. The thesis still stands as Wix expands its professional ecosystem. Tyro shares a similar but emphasizes on valuation upside.

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.

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Disclosure: None.