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Wix.com (WIX) Valuation Check After Earnings Beat, 2025 Guidance Hike and AI Expansion

Simply Wall St · 1d ago

Wix.com (WIX) just delivered an earnings beat, lifted its 2025 revenue outlook, and saw a major institutional investor boost its stake, together with an active buyback that signals managements confidence.

See our latest analysis for Wix.com.

Even with upbeat earnings, higher 2025 guidance, and the Base44 acquisition strengthening its AI tools, Wix.com’s recent share price return has been weak. Short term pressure contrasts with a stronger three year total shareholder return, suggesting sentiment could be stabilizing rather than collapsing.

If this mix of volatility and growth potential has your attention, it is also a good moment to scout other high growth tech names through high growth tech and AI stocks.

With shares down sharply year to date but still trading at a sizable discount to analyst targets and intrinsic estimates, the key question now is whether Wix is genuinely undervalued or if future growth is already reflected in the current price.

Most Popular Narrative: 38.8% Undervalued

With Wix.com closing at $102.64, the most widely followed narrative pegs fair value far higher, implying substantial upside if its long term plan plays out.

AI powered feature rollouts (e.g., generative engine optimization, AI marketing agent, advanced business solutions) are driving higher user monetization and enabling price optimization, which can contribute to rising average revenue per user and enhance gross margins.

Read the complete narrative.

Want to see how sustained double digit growth, fatter margins, and a punchy future earnings multiple all fit together? The narrative math may surprise you.

Result: Fair Value of $167.76 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising AI competition and heavier spending on infrastructure and marketing could squeeze margins, slowing Wix’s path to the narrative’s implied upside.

Find out about the key risks to this Wix.com narrative.

Another View: Rich on Earnings

On earnings, the picture flips. Wix trades on a 40.4x price to earnings ratio, above both the US IT sector at 30x and its own 37x fair ratio, and even slightly richer than peers at 40.1x. Is this premium a signal of quality or downside risk?

See what the numbers say about this price — find out in our valuation breakdown.

NasdaqGS:WIX PE Ratio as at Dec 2025
NasdaqGS:WIX PE Ratio as at Dec 2025

Build Your Own Wix.com Narrative

If you see things differently, or want to dig into the numbers yourself, you can build a fresh Wix.com story in minutes: Do it your way.

A great starting point for your Wix.com research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.