We came across a bullish thesis on Wix.com Ltd. on i’m stf’s Substack by stf. In this article, we will summarize the bulls’ thesis on WIX. Wix.com Ltd.’s share was trading at $93.04 as of January 28th. WIX’s trailing and forward P/E were 37.27 and 12.72 respectively according to Yahoo Finance.
Copyright: melpomen / 123RF Stock Photo
Wix.com Ltd., together with its subsidiaries, operates a cloud-based web development platform for registered users and creators worldwide. WIX is viewed as undervalued following its June 2025 acquisition of Base44, with the market seemingly focused on fears of AI-driven disruption and competition from Google while overlooking the potential for meaningful ARR re-acceleration. Recent share price weakness appears to discount the risk of “AI replacement” but fails to reflect the opportunity created by embedding Base44’s “vibe-coding” capabilities across Wix’s 270M+ registered user base.
Wix operates a freemium SaaS model anchored by its DIY website builder, which remains the core cash-flow engine through premium subscriptions, while its Wix Studio platform has successfully moved the company upmarket by serving professional creators, agencies, and enterprises at higher ARPU levels.
The Base44 acquisition, completed for approximately $80 million, introduces conversational AI-driven development that allows users to build websites and applications through natural language prompts rather than drag-and-drop tools or traditional code. Rather than a standalone product, Base44 is best understood as a feature layer that can be integrated across Wix’s ecosystem.
This technology significantly expands Wix’s total addressable market by attracting non-technical users who want to create tools or apps, not just websites, while also providing a compelling new upsell lever for its largely free user base. Base44 can also be packaged into premium AI-driven tiers, driving ARPU expansion and allowing Wix to compete directly with AI-native platforms.
Importantly, alternative web traffic data suggests Base44 usage continues to grow post-acquisition, serving as a leading indicator of durable demand and reducing integration risk. Success can materialize through both direct ARR from Base44 and accelerated monetization across Wix’s existing users.
While integration challenges, Google competition, and the risk of vibe-coding being a fad remain, these concerns appear largely priced in. With the market fixated on downside, the upcoming Q3 2025 earnings call represents a key catalyst for management to quantify this growth and potentially drive a re-rating.
