Is WIX a good stock to buy? We came across a bullish thesis on Wix.com Ltd. on MVC Investing’s Substack by M. V. Cunha. In this article, we will summarize the bulls’ thesis on WIX. Wix.com Ltd.’s share was trading at $48.21 as of June 8th. WIX’s trailing and forward P/E were 62.84 and 9.74 respectively according to Yahoo Finance.
Wix.com Ltd. operates a cloud-based web development platform for registered users and creators in the United States and internationally. WIX reported strong Q4 and FY2025 results that reinforced the bullish thesis around its core business durability and the extraordinary growth potential of Base44, its recently acquired AI-driven vibe coding platform.
The company generated nearly $2.0 billion in FY2025 revenue, up 13% year-over-year, while producing more than $600 million in free cash flow with a 30% margin, demonstrating that the underlying Wix platform remains highly profitable despite elevated investment spending.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
Management emphasized that recent margin compression was primarily driven by aggressive sales, marketing, and AI infrastructure investments tied to Base44 rather than deterioration in the core business, which continues to generate 30%+ free cash flow margins and double-digit growth. Wix’s Business Solutions, Partners ecosystem, payments operations, and AI-powered Harmony website platform all showed accelerating adoption, with Harmony already improving conversion, monetization, and engagement metrics.
The largest source of upside, however, is Base44, which surpassed $100 million in ARR less than a year after launch and is scaling at one of the fastest rates seen in software history. Management believes the acquisition significantly expands Wix’s addressable market beyond websites into app development, enterprise workflows, and AI-native software creation.
The company also announced a massive $2 billion buyback program, representing roughly 40-45% of its market capitalization. With guidance implying approximately $500-575 million in 2026 free cash flow, WIX trades at only about 8-9x FCF despite mid-teens growth. The thesis argues that Base44 alone could eventually justify Wix’s entire current market valuation if its growth trajectory continues.
Previously, we covered a bullish thesis on Wix.com Ltd. (WIX) by The Dutch Investors in November 2024, which highlighted its competitive moats through switching costs, economies of scale, and network effects supporting long-term growth. WIX’s stock price has depreciated by approximately 73.21% since our coverage. M. V. Cunha shares a similar view but emphasizes Base44’s AI-driven growth potential and aggressive capital returns.
Wix.com Ltd. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held WIX at the end of the first quarter which was 45 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.
