Wix.com Ltd. (WIX): A Bull Case Theory

We came crossed a bullish thesis connected Wix.com Ltd. connected Valueinvestorsclub.com by tyro. In this article, we volition summarize the bulls’ thesis connected WIX. Wix.com Ltd.'s stock was trading astatine $95.19 arsenic of December 1st. WIX’s trailing and guardant P/E were 40.56 and 12.64 respectively according to Yahoo Finance.

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Wix.com Ltd. (WIX) operates a starring no-code website gathering level that enables users to plan and negociate websites without method expertise. As of 2024, Wix had 282 cardinal registered users and 6.2 cardinal paying subscribers, with maturation driven by its intuitive drag-and-drop interface and expanding nonrecreational idiosyncratic base. The planetary Content Management Software (CMS) marketplace remains dominated by WordPress, but Wix continues to summation stock alongside Shopify, capitalizing connected the no-code DIY trend.

Despite a impermanent dip successful idiosyncratic conversion from 2.7–2.8% successful 2022 to 2.2% successful 2024 owed to terms adjustments and churn among hobbyist users, wide idiosyncratic maturation remains coagulated astatine 7% YoY, with stableness expected arsenic pricing effects normalize. Particularly beardown momentum is coming from nonrecreational and agency-driven partnerships, increasing astir 30% annually, reflecting the occurrence of Wix Studio and enhanced assemblage engagement initiatives.

ARPU has been rising astir 10% annually for astir a decade, powered by subscription terms hikes, increasing payments adoption, and domain registration revenue. Payments present lend meaningfully with 20% yearly maturation and a 1.75% instrumentality complaint connected $12.3 cardinal successful GMV, treble that of Squarespace. Wix’s acquisition of Base44, an LLM-powered “vibe coding” startup, marks a large TAM enlargement opportunity.

Acquired for $80 million, Base44 is connected way for $40–50 cardinal ARR successful 2025, adding 2–3% to Wix’s integrated growth. Trading astatine a 6.5% escaped currency travel output and 3.8x NTM revenue, Wix appears undervalued comparative to Squarespace’s 5x takeout multiple. With accelerating innovation, expanding nonrecreational adoption, and a imaginable re-rating toward 5–6x NTM revenue, Wix offers 30–50% upside, the cardinal catalyst being revenue acceleration successful 2026.

Previously we covered a bullish thesis connected Wix.com Ltd. by The Dutch Investors successful November 2024, which highlighted the company’s beardown moats and scalable level driving semipermanent growth. The company’s banal terms has depreciated astir by 47.11% since our coverage. This is due to the fact that the maturation thesis has not yet played out. The thesis inactive stands arsenic Wix expands its nonrecreational ecosystem. Tyro shares a akin but emphasizes connected valuation upside.