Since the start of the year, the share price of Wix.com Ltd. (Nasdaq: WIX) has been on a rollercoaster. In March, the Israeli website building company implemented a controversial move in which it bought back its own shares to the tune of $1.6 billion, when the share price was $92.
Subsequently, the share price plunged by more than half, hitting an annual low of just around $40, amid a broader decline in SaaS (Software as a Service) stocks driven by developments in AI. Since then, the stock has doubled in value (reflecting a recovery in the software sector) and is currently trading at approximately $77, giving Wix a market cap of $3.25 billion, though this still represents a decline of about 26% year-to-date.
In the interim, Wix announced in May that it would lay off 20% of its workforce (some 1,000 employees). The company attributed this move to the shekel-dollar exchange rate, which created structural cost pressures, as well as the need to become a leaner, more agile organization due to AI developments. Is the path forward now upward? Two investment banks that cover Wix issued recommendations this week suggesting that it might be.
Wix, led by Avishai Abrahami, enables users to create and manage websites. In 2025, the company acquired Base44, founded by Maor Shlomo, which allows users to build digital creations using natural language, without the need for code (vibe coding). This acquisition has become a major growth engine for Wix. Furthermore, Base44 has since launched its own language model, dubbed Base1. With the release of its latest financial results, Wix noted that while Base44 began 2026 with a near-zero non-GAAP gross margin, it is projected to reach 60% in the second half of the year.
"Some Upside in Growth"
Investment bank Cantor analyst Deepak Mathivanan raised his price target for Wix stock to $90 - a 17% premium on the current price, while keeping an "Outperform" rating. He anticipates that Wix’s third-quarter results (due next month) will show upside in both bookings and revenue growth.
Mathivanan explains that since the company’s last financial report in August, "Foreign exchange headwinds have moderated, and growth in Base44 has remained strong." He expects the company’s fourth-quarter forecast to reflect low double-digit growth year-over-year, and anticipates that, alongside the report, Wix management will provide further details on "The recent strength in Base44 and the strategy for 2027."
"Still well-positioned"
Meanwhile, Oppenheimer updated its list of recommended Israeli stocks this week, reinstating Wix with an "Outperform" rating and a price target of $85 - a 10.4% premium over its current price. Senior equity analyst Sergey Vastchenok notes that Wix has some 317 million registered users and an ARR (Annual Recurring Revenue) of nearly $2 billion.
Vastchenok says, "The primary growth drivers are the Base44 platform, which is experiencing exceptionally high growth; the new AI-based website editor, Wix Harmony; and the Wix Headless layer, which provides business infrastructure, including payments, commerce, and customer management, for websites and applications built using external AI tools."
He adds that the rate at which Base44 acquires new users is approaching that of Wix itself, and the launch of its Base1 language model is significantly reducing the company's costs. Vastchenok notes that Base44’s leading competitor, Swedish company Lovable, raised $400 million in August at a valuation of $13.3 billion, based on an annual revenue run rate of approximately $500 million, representing a multiple of 27x.
He states, "Even assuming half that multiple, Base44’s valuation could reach $1.5 billion or more, roughly 40% of Wix’s total market cap, without even accounting for the full value of its profitable core business."
Vastchenok highlights the latent value within Wix and the potential for unlocking that value. He argues that despite concerns on the impact of AI tools on the business model, and the fact that Wix has shifted to a net debt position due to share repurchases, the company remains well-positioned, with its stock trading at a major discount relative to the software industry average.
Published by Globes, Israel business news - en.globes.co.il - on October 21, 2026.
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