William Blair has reiterated an Outperform rating on Wix.com (NASDAQ: WIX), highlighting the company’s forward progress on strategic initiatives such as AI and Studio. The firm views these efforts as positive momentum for the website-building platform provider.
Analyst consensus on the stock remains strong - standing at 1.5 on the scale reported by InvestingPro, which corresponds to a Strong Buy view. William Blair emphasized that Wix’s product development and AI work are constructive developments for the business.
On a trailing-12-month basis, Wix recorded revenue growth of 13.22%. William Blair notes, however, that the company has temporarily increased its investment levels to support the Base44 project. That elevated spend departs from Wix’s historical profitability profile and reflects an expansion into the so-called vibe coding market.
Despite potential investor concern about the short-term profitability impact of these investments, William Blair described the approach as the right long-term move for the company, believing it positions Wix for future growth even if it compresses near-term margins.
From a valuation standpoint, William Blair indicated that Wix shares are trading at 6.5 times estimated free cash flow for 2027 under its framework. InvestingPro data cited in the firm’s commentary shows Wix currently offers a free cash flow yield of about 11% and trades slightly below its Fair Value assessment. InvestingPro also highlights that the company carries a low P/E ratio relative to its near-term earnings growth potential.
On the capital-allocation front, Wix’s Board of Directors has authorized a $2 billion share repurchase program. The two-year program is slated to run through fiscal years 2026-2027 and permits the repurchase of ordinary shares and convertible notes via multiple channels, including open market purchases and privately negotiated transactions.
Product innovation continues in parallel with the company’s capital moves. Wix has launched Wix Harmony, an AI-powered website builder that blends natural language generation with visual editing. The new platform includes an AI agent named Aria that can carry out website changes through natural language commands.
Not all analysts are aligned on valuation. In a separate update, Citizens reduced its price target for Wix.com to $125 from $185, citing valuation concerns while retaining a Market Outperform rating. These mixed analyst reactions underscore divergent views on how best to weigh Wix’s investment spending, growth prospects, and current valuation.
Overall, the coverage reflects a mix of constructive views on Wix’s strategic direction and caution around near-term profitability and valuation. The company’s revenue growth, expanding AI product set, and a sizable, board-approved buyback program are balanced by investor attention on the temporary increase in investment and differing price-target assessments among analysts.