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A Once-in-a-Decade Investment Opportunity: Buy This Software Stock Right Now

newsfeedback@fool.com (Brett Schafer)
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⚡ Quantum Brief
Wix stock has plummeted 73% from its 2025 peak, now trading at $66 despite generating $570M in free cash flow over the past year, creating a potential undervaluation opportunity. The company’s new AI-powered tool, Wix Harmony, integrates chatbot-driven website creation with its existing template library, positioning it as an AI innovator rather than a disruptee. Wix’s 2025 acquisition of Base44, now nearing $50M–$100M in annual revenue, expands its offerings into code-based app development, diversifying beyond its core website-building business. Market misperceptions label Wix an "AI loser," ignoring its 68% gross margins and $2B share buyback plan, which signals confidence in long-term growth amid AI-driven demand for digital tools. Small businesses are unlikely to abandon Wix’s ecosystem for cheaper AI alternatives, given its decade-long dominance in low-code solutions and expanding AI-enhanced product suite.
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Investors are misinterpreting what the future holds for this small business platform.Every software stock is getting tossed around by the market, either determined to be an artificial intelligence (AI) winner or an AI loser. Most are getting put into the AI loser camp, including Wix.com (WIX +4.09%). The website-building and small-business management platform is at risk of disruption from new zero-code tools like Claude, which enable people to build their own websites from scratch. Or, at least, that's how the story goes. But if you look at the underlying business, its core customers, and the new products the company has developed, it is clear that Wix is actually an AI winner. Here's why buying Wix stock down 73% from recent highs could be a once-in-a-decade investment opportunity. Image source: Getty Images. AI winner, or AI loser? Wix's core business is website building, enabling individuals, small businesses, and third-party design teams to use its tools to build websites. It generates revenue from subscription fees and add-on software, including payment processing for e-commerce transactions. The platform was the original low-code website creation tool, using prompts and templates for users for a decade. Now, with the rise of AI chatbots, Wix has launched its own vibe coding tool, Wix Harmony, which lets users prompt its chatbot to build a website using Wix's extensive library of website templates. ExpandNASDAQ: WIXWix.comToday's Change(4.09%) $2.57Current Price$65.37Key Data PointsMarket Cap$3.6BDay's Range$62.26 - $66.5052wk Range$62.20 - $207.45Volume23Avg Vol1.7MGross Margin68.45% It is hard to see why a small business owner would suddenly switch their website management platform from Wix to a start-up like Claude to save a few hundred dollars a year, especially when Wix now offers all the same tools. What's more, Wix acquired code-based app builder Base44 last year, which had close to zero in revenue but is now closing in on $50 million to $100 million in annual recurring revenue (ARR). With the advent of these new AI tools, more websites and mobile applications are being created. With Wix owning its flagship website brand and now Base44 for apps, it should be able to take advantage of this tailwind over the next few years and beyond. Why Wix stock is cheap right now Despite this growth potential, Wix is included in a group of software stocks considered AI losers by Wall Street. From a high of $240 at the start of 2025, Wix has now entered a 73% drawdown, trading at $66. This gives the stock a market cap of $3.7 billion. Over the last 12 months, the business has generated $570 million in free cash flow, or less than 10 times this trailing market cap. With this cash flow, Wix is plowing money into share repurchases, with the board of directors recently authorizing a $2 billion buyback plan. Combine everything, and Wix.com stock becomes extremely appetizing at today's price.Read NextFeb 23, 2026 •By Will HealyDorsal Capital Dumps 25,000 Wix.com Shares Worth $3 MillionFeb 17, 2026 •By Brett SchaferHow Buying Wix.com Stock Today Could 10X Your Net WorthFeb 15, 2026 •By Brett SchaferSoftware Bear Market: 2 Stocks With Massive Upside, According to Wall StreetFeb 4, 2026 •By Timothy GreenHere's Why Wix.com Stock Tumbled 16% in JanuaryJan 24, 2026 •By Adam LevyThis Small-Cap Growth Stock Has Been Hit Hard By the Rise of Artificial Intelligence.

But It Could Turn Into a Vibe Coding Giant.Jan 13, 2026 •By Brett SchaferWhy Shares of Wix.com Stock Collapsed In 2025About the AuthorBrett Schafer is a contributing Motley Fool stock market analyst covering consumer goods, financials, technology, and industrials. Brett is a self-taught investor and has hosted the Chit Chat Stocks podcast since 2018. He previously worked as a lab engineer for science laboratories. He holds a bachelor’s degree in mechanical engineering with minors in finance and mathematics from Washington State University. His lab work on Major League Baseball’s juiced ball problem was featured in The Wall Street Journal and other national outlets.TMFBrettSchaferX@CCM_BrettStocks MentionedWix.comNASDAQ: WIX$65.37 (+4.09%) $+2.57*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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