10 Best Strong Buy AI Stocks to Invest In

7. Wix.com Ltd. (NASDAQ:WIX)

Number of Hedge Fund Holders: 71

Wix.com Ltd. (NASDAQ:WIX) is a technology company that provides software development services by allowing users to develop their websites without relying on coding. The firm operates in the AI software industry by allowing customers to use AI to develop their websites.

Wix.com Ltd. (NASDAQ:WIX)’s third-quarter earnings report on November 19th led to a flurry of analyst action for the firm. One such report came from Barclays as it increased the firm’s share price target to $236 from $184. The bank cited the earnings report to comment that Wix.com Ltd. (NASDAQ:WIX) was experiencing healthy growth in business and partner products and added that the firm’s free cash flow margin was also nearing 30%. Barclays kept its Overweight rating on the shares and added that Wix.com Ltd. (NASDAQ:WIX) also enjoyed diversification through having three different businesses to grow.

Talking about hedge funds, 71 hedge funds disclosed holding Wix.com Ltd. (NASDAQ:WIX) in their third-quarter 13F filings. A notable filing came from Rima Senvest Management as its position jumped by 22%.

During Wix.com Ltd. (NASDAQ:WIX)’s third quarter earnings call, Wix.com Ltd. (NASDAQ:WIX)’s management discussed the firm’s Base 44 acquisition and pointed out that it was helping with guidance:

“I think that it’s fair to say that most of the increase in guidance is coming from the strength that we see with the Base 44 business. I think that it’s very much kind of different from what we’ve seen only last earnings. I remember it has been like five months from the minute that we’ve bought this business. The first earning that we had like a few months ago, we’ve seen the demand, but in the last few months, it’s even much, much bigger than what we anticipated at the very beginning. This is why we’ve decided to invest more. And I do believe that Base 44 will turn out to be a significant growth driver for Wix.com Ltd. With regard to the margin headwind, yes, I believe that it will continue and let me even say differently, I hope that it will continue because it means that we are going to see a much higher demand.

I think that in this case, it’s really the same as what we’ve seen, you know, in the past from Wix.com Ltd. You know, every time that we’ve launched a new product, it was actually the case the very beginning with the ADI, even when we started the partners business. We saw such a huge demand and obviously we are investing in to capture it. So, yes, I mean, in the short term, we are going to see some more pressure on margin. I’m not sure where the margin expansion will start again. It is going to be 2026 or late 2026. It really depends on the demands that we are going to see for this business.”