Is WIX a good stock to buy? We came across a bullish thesis on Wix.com Ltd. on Hated Moats’s Substack. In this article, we will summarize the bulls’ thesis on WIX. Wix.com Ltd.’s share was trading at $70.16 as of April 15th. WIX’s trailing and forward P/E were 79.73 and 12.52 respectively according to Yahoo Finance.
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Wix.com Ltd. operates a cloud-based web development platform for registered users and creators in the United States and internationally. With ~293 million registered users and millions of premium subscribers, Wix is positioned at the center of online creation, combining design tools, e-commerce, marketing, hosting, and developer extensions into a unified ecosystem.
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The company’s strategic shift into AI, led by Wix Harmony and Base44, enables vibe coding that allows users to build websites with minimal technical expertise, expanding addressable market rather than disrupting it. Wix’s ecosystem advantages are reinforced by network effects through its App Market, developer platform Velo, and a growing partner channel contributing a majority of commerce activity, supporting engagement and monetization.
Financially, Wix continues mid-teens revenue growth, ~68% gross margins, and rapidly expanding free cash flow, with FY2025 FCF guidance near $600M and Rule of 40+ performance highlighting efficiency. Despite these fundamentals, the stock trades near ~2x sales and ~10x FCF after a selloff driven by AI disruption fears, creating a valuation disconnect versus peers.
Management has reinforced confidence through a $2B buyback authorization, signaling strong capital return and undervaluation. Even under conservative assumptions, Wix’s AI-driven upsell potential, rising ARPU, and stable retention suggest compounding, while upside scenarios point to accelerating growth and multiple expansion. Overall, Wix represents a misunderstood AI transition story where the market is pricing disruption, but the company is actively integrating AI to strengthen its moat and enhance long-term cash flow.
Previously, we covered a bullish thesis on Wix.com Ltd. (WIX) by The Dutch Investors in November 2024, which highlighted strong switching costs, economies of scale, and network effects supporting durable platform growth in the website-building industry. WIX’s stock price has depreciated by approximately 61.02% since our coverage. Hated Moats shares a similar view but emphasizes AI-driven transformation, deep free cash flow generation, and a $2B buyback reinforcing long-term shareholder value.
Wix.com Ltd. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held WIX at the end of the fourth quarter which was 71 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.
