Back to News
investment

Why Wix.com Stock Soared 33% This Week

newsfeedback@fool.com (Brett Schafer)
Loading...
3 min read
0 likes
⚡ Quantum Brief
Wix stock surged 33% this week after reporting Q4 2025 earnings that exceeded expectations, with revenue rising 14% year-over-year to $524 million, defying prior AI disruption concerns. The company’s 2025 acquisition, Base44, now generates over $100 million in annual recurring revenue, fueling growth projections for 2026, including mid-teens revenue expansion. Wix unveiled a $2 billion share buyback program, capitalizing on its undervalued stock after a 66% decline over the past year, signaling confidence in future performance. New AI-powered tools, including a ChatGPT partnership for "vibe coding" websites, demonstrate Wix’s adaptive strategy amid evolving tech trends. Despite the rally, analysts argue Wix remains undervalued at a $5.1 billion market cap, citing strong free cash flow and growth potential in AI-driven website solutions.
AI Audio Summary
0:00 / 0:00
Click to play
generated-image (60).png
Quantum News · Media Library

By Brett Schafer – Mar 6, 2026 at 5:47PM ESTKey PointsWix showed strong revenue growth last quarter despite a narrative around AI disruption. The company is projecting stronger growth in 2026 and plans to repurchase a large portion of its outstanding stock. Shares of Wix still look cheap, even after busting higher this week. Shares of Wix.com (WIX +1.15%) shot up 33% this week, according to data from S&P Global Market Intelligence. The website-building platform is getting a boost from steady revenue growth last quarter, a blistering acquisition, and its proposed aggressive share buyback program. Wix's stock has been hit by fears over artificial intelligence (AI) disruption, which haven't materialized in its financial performance thus far. Here's why Wix stock was soaring this week, and whether you should follow suit and add shares at these higher levels. ExpandNASDAQ: WIXWix.comToday's Change(1.15%) $1.07Current Price$94.01Key Data PointsMarket Cap$5.1BDay's Range$90.94 - $94.7352wk Range$60.22 - $191.24Volume151KAvg Vol2MGross Margin68.07% Strong earnings, huge share buyback Earlier in the week, Wix reported Q4 2025 earnings, delighting Wall Street with its financial performance. Revenue was up 14% year-over-year to $524 million, while its Base44 acquisition from last year has recently surpassed $100 million in annual recurring revenue (ARR), up from virtually nothing a year ago. Free cash flow generation was solid, at $155 million in the period. For 2026, Wix is guiding for mid-teens revenue growth, which would likely mean an acceleration from 2025. This is due to Base44's financial performance and Wix's recent product launches, including vibe coding websites that leverage the latest AI tools, such as ChatGPT (with which Wix has a new partnership). This flies in the face of the narrative that sent Wix's stock price into a 66% drawdown over the last twelve months. To take advantage of this low share price, Wix has announced a $2 billion share repurchase program. Even with the stock popping this week, the company has a market cap of only $5 billion, suggesting it could retire a significant portion of its outstanding shares. Image source: Getty Images. Time to chase Wix stock? Wix's stock was beaten down before this week's pop, but it still looks cheap given the growth potential of its AI-powered website-building tools, along with the free cash flow it expects to generate and use to repurchase stock in the coming years. At a price below $100, Wix looks like a good buy for the rest of 2026 and beyond. Read NextMar 4, 2026 •By Joe TenebrusoWhy Wix Stock Popped TodayMar 1, 2026 •By Brett Schafer2 Red-Hot Growth Stocks to Buy in 2026Feb 25, 2026 •By Brett SchaferA Once-in-a-Decade Investment Opportunity: Buy This Software Stock Right NowFeb 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 StreetAbout 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$94.01(+1.15%)+$1.07*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Read Original

Tags

quantum-investment
quantum-commercialization
partnership

Source Information

Source: The Motley Fool

Discussion

0 professional contributions

Sign in to join this professional discussion.

Be the first to add a constructive contribution.