Wix’s AI Acquisition Signals Capital Strategy Shift, Says Barclays

Wix.com Ltd. (NASDAQ:WIX) ranks among the 30 stocks expected to beat the market by 20 percentage points this year. On June 18, Barclays maintained its $240 price target and Overweight rating on Wix.com Ltd. (NASDAQ:WIX).

The rating confirmation comes after Wix.com Ltd. (NASDAQ:WIX) recently announced that it had acquired “Hour One,” a company with generative AI capabilities, just weeks prior.

Wix’s AI Acquisition Signals Capital Strategy Shift, Says Barclays

Wix’s business strategy may be changing, according to Barclays, which said, “We do wonder if Wix is beginning to prioritize M&A as a larger part of its capital allocation strategy.” That said, Barclays does not see Wix pursuing significant game-changing acquisitions, despite the recent deals. The firm stated that smaller purchases could yet occur while large-scale M&A seems unlikely.

In particular, the research firm stated that it “would not be surprised to see more of these tuck-in deals to bolster talent/product capabilities,” implying that Wix.com Ltd. (NASDAQ:WIX) would keep making targeted acquisitions to improve its current technological expertise and service offerings.

Wix.com Ltd. (NASDAQ:WIX) is a cloud-based platform that enables those without technical expertise to create websites. It offers Wix Editor, Wix ADI, and numerous other services.

While we acknowledge the potential of WIX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.