Is WIX a good stock to buy? We came across a bullish thesis on Wix.com Ltd. on Danny’s Substack by Danny Green. In this article, we will summarize the bulls’ thesis on WIX. Wix.com Ltd.’s share was trading at $92.94 as of March 5th. WIX’s trailing and forward P/E were 35.60 and 12.17 respectively according to Yahoo Finance.
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Wix is emerging as a leading player in the no-code web creation and AI-augmented design space, capitalizing on continued high global demand for digital presence solutions and small-to-medium business (SMB) digitization. Its core subscription business remains robust, supported by long-term TAM expansion in e-commerce and web services, though macro uncertainty and tighter SMB budgets could slow new customer additions.
Q1–Q3 2025 results reflect consistent top-line growth, with revenue and bookings rising 12–14% year-over-year and bookings reaching approximately $511 million in Q1. Free cash flow margins remain strong at 30%+, highlighting resilient business economics, though GAAP net income can fluctuate with heavy AI and marketing investments, as seen in Q3’s modest $0.6 million loss.
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Wix’s strategic expansion into AI-powered platforms, including Wixel and Base44, complements its Partner segment, which grew 24% in Q1 through Studio adoption, enhancing its market position and monetization potential. The company benefits from high gross margins (~68–70%) and a deep, recurring user base of over 282 million users, with growth into higher-ARPU segments like Business Solutions further strengthening its moat. Competitive pressures from other no-code and AI-native platforms remain, and execution on AI initiatives is critical to maintain adoption and minimize churn risk.
Management has balanced growth investments with shareholder returns, completing ~$725 million in share repurchases while funding AI innovation and acquisitions. Upside catalysts include adoption of AI platforms, ARR growth from Base44 and Wixel, Partner segment acceleration, and margin expansion.
Downside risks involve AI cost inflation, competitive displacement, execution missteps, and macro slowdowns. While Wix’s stock has faced volatility, particularly with a ~50% decline over 12 months, the company presents a compelling long-term SaaS and AI optionality story, offering a meaningful portfolio position for investors willing to navigate near-term execution risk and sector headwinds.
Previously, we covered a bullish thesis on Wix.com Ltd. (WIX) by The Dutch Investors in November 2024, which highlighted its strong Creative Subscriptions and Business Solutions revenue, competitive moats, and founder-led management. WIX’s stock price has depreciated by 48.36% since our coverage due to slowing SMB demand, competitive pressure in website-building platforms, and broader valuation compression across SaaS stocks.. Danny Green shares a similar view but emphasizes AI-augmented design, no-code expansion, and free cash flow strength.
Wix.com Ltd. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 71 hedge fund portfolios held WIX at the end of the fourth quarter which was 42 in the previous quarter. While we acknowledge the risk and potential of WIX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WIX and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
