Wix.com (WIX) Stock Forecast & Price Target

Wix.com is attractive because it is showing stronger underlying demand and better-than-feared execution, with 2Q revenue of $563mm rising 14.9% y/y, bookings up 11.6%, and total ARR reaching $1.96B, while Self Creators growth accelerated to 14% and Business Solutions grew 14%. The most important fundamental upside comes from Base44 and the in-house Base1 LLM, which should lift Base44 non-GAAP gross margin to about 60% in 2H26 from near-zero earlier in the year, improve consolidated gross margin by roughly 2 points, and lower AI costs to 30-40% of Base44 bookings. Even as management reinvests savings into growth, the company maintained low-teens revenue and bookings guidance and high-teens FCF margin outlook for 2026, suggesting improving economics with a differentiated full-stack SMB platform and expanding AI-enabled partner workflows.

Wix.com is facing weakening fundamentals as FY2027 estimates were cut to $2.5B revenue, $390mm of adjusted EBITDA, $455mm of free cash flow, and just $0.51 of GAAP EPS, reflecting slower growth and margin pressure. The negative outlook is driven by rising competition from AI-powered “vibe coding” tools, with management acknowledging LLMs are increasingly prompting users to build outside Wix, while partner weakness suggests these headwinds are already affecting traction. Additional risks include slower user growth, lower free-to-premium conversion, softer customer acquisition efficiency, weaker retention if SMBs become more price sensitive, and uncertainty around Base44’s ability to create value before 2027.