1. Wix.com Ltd. (NASDAQ:WIX)
Number of Hedge Fund Holders: 45
Stock Upside: 104.96%
Wix.com Ltd. (NASDAQ:WIX) is one of the best Middle East and Africa stocks to buy according to hedge funds. On May 13, BofA Securities lowered its price target on Wix.com Ltd. (NASDAQ:WIX) to $95 from $109, while keeping its Buy rating. The firm made the call following Wix.com’s Q1 FY2026 earnings release the same day. BofA described the results as mixed.
According to Wix.com, quarterly revenue reached $541 million, up 14% year over year; however, this fell short of the analyst consensus of around $544 million. The company added that non-GAAP EPS came in at $0.68, which badly missed the $1.22 consensus. Management explained that revenue growth came from a 46% year over year surge in new user cohort bookings, to $52 million. The cohort bookings were largely boosted by Base44, the AI-powered app-building platform Wix acquired in 2025. There was also a noticeably higher conversion of new users into paid subscriptions, driven by the January 2026 rollout of Wix Harmony, the company’s AI website creation platform, noted management. Nonetheless, Base44 ultimately contributed to the earnings miss immensely because, as per management, it has not yet fully ramped to the scale the market had priced in.
The company explained that the EPS miss was due to elevated AI compute costs to run and scale Base44. Management noted that new users consume disproportionately more AI inference bandwidth during their initial build phase. As a result, Base44 costs are front-loaded by design.
Wix.com Ltd. (NASDAQ:WIX) is an Israeli web development platform company. It provides cloud-based tools that allow individuals and businesses to create, manage, and operate websites, online stores, and digital applications without advanced coding expertise.
While we acknowledge the potential of WIX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WIX and that has 100x upside potential, check out our report about the cheapest AI stock.
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