Core Insights - Analysts expect Wix.com (WIX) to report quarterly earnings of $1.75 per share, reflecting a year-over-year increase of 4.8% [1] - Projected revenues for the quarter are $487.58 million, which represents an 11.9% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a reevaluation of initial estimates by analysts [1] Revenue Estimates - 'Revenues - Business Solutions' are projected to reach $141.98 million, indicating a year-over-year change of +14.9% [4] - 'Revenues - Creative Subscriptions' are estimated at $345.42 million, suggesting a +10.7% year-over-year change [4] - Total Bookings are expected to reach $506.41 million, compared to $458.40 million reported in the same quarter last year [4] Annual Recurring Revenue (ARR) and Bookings - The consensus estimate for 'Creative Subscriptions ARR' is $1.41 billion, up from $1.28 billion a year ago [5] - 'Total Bookings - Business Solutions' is expected to be $147.18 million, compared to $129.43 million in the same quarter of the previous year [5] Gross Profit Estimates - 'Total Bookings - Creative Subscriptions' is projected at $360.40 million, compared to $328.97 million from the previous year [6] - 'Non-GAAP Gross Profit - Business Solutions' is estimated at $44.88 million, up from $36.65 million in the same quarter last year [6] - 'Non-GAAP Gross Profit - Creative Subscriptions' is expected to reach $292.55 million, compared to $261.61 million reported in the same quarter last year [7] Stock Performance - Wix.com shares have shown a return of -21.5% over the past month, while the Zacks S&P 500 composite has increased by +0.6% [7] - The company holds a Zacks Rank 3 (Hold), indicating expectations to mirror overall market performance in the near future [7]

Core Insights - Wix.com Ltd. has launched a new financial services suite, including Wix Checking and Wix Capital, aimed at helping merchants manage cash flow and support business growth [1][4] Group 1: Wix Checking - Wix Checking is an integrated business checking account that provides users with a real-time view of cash flow and business performance, allowing instant access to earnings upon sale completion [2] - The service syncs with Wix Payments, eliminating the need for external banking tools and manual reconciliations, thus saving time and reducing errors [2] - Merchants can use their funds via a Wix Visa® business debit card or transfer to an external bank account, offering flexibility in managing finances [2] Group 2: Wix Capital - Wix Capital is a Merchant Cash Advance (MCA) service designed to help businesses overcome cash flow gaps and access funds quickly [3] - This service allows users to request cash advances in exchange for a fixed fee and a percentage of future sales, providing a faster alternative to traditional bank funding [3] - Wix Capital is built into the Wix platform, enabling users to invest in their business without leaving the tools they already use [3] Group 3: Strategic Commitment - The introduction of Wix Checking and Wix Capital reflects Wix's commitment to supporting small businesses throughout their ownership journey, from daily operations to financial decision-making [4] - These services are currently available to a select group of U.S.-based users utilizing Wix Payments, with plans for gradual rollout to more users [4]

Company Performance - Wix.com ended the recent trading session at $150.50, demonstrating a -1.31% change from the preceding day's closing price, lagging the S&P 500's daily gain of 0.02% [1] - Over the past month, shares of Wix.com had lost 3.49%, underperforming the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 4.93% [1] Upcoming Earnings - The upcoming earnings release of Wix.com is expected on August 6, 2025, with projected EPS of $1.75, signifying a 4.79% increase compared to the same quarter of the previous year [2] - The consensus estimate for quarterly revenue is $487.58 million, up 11.89% from the year-ago period [2] Annual Estimates - For the annual period, Zacks Consensus Estimates anticipate earnings of $7.13 per share and revenue of $1.98 billion, reflecting shifts of +11.58% and +12.7%, respectively, from the last year [3] Analyst Revisions - Recent changes to analyst estimates for Wix.com indicate evolving short-term business trends, with positive revisions conveying analysts' confidence in business performance and profit potential [3][4] Zacks Rank - Wix.com currently holds a Zacks Rank of 5 (Strong Sell), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [5] - The Zacks Rank system has a track record of outperforming, with stocks rated 1 producing an average annual return of +25% since 1988 [5] Valuation Metrics - Wix.com has a Forward P/E ratio of 21.39, which is higher than the industry average Forward P/E of 19.78, indicating that Wix.com is trading at a premium [6] - The company also has a PEG ratio of 1.04, compared to the Computers - IT Services industry's average PEG ratio of 1.95 [7] Industry Ranking - The Computers - IT Services industry, which includes Wix.com, ranks in the bottom 35% of all industries, with a current Zacks Industry Rank of 161 [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - Wix and PayPal have initiated a deeper integration that allows PayPal to be directly available within the Wix Payments platform, enhancing transaction management for merchants [1][2] - The integration is currently available to Wix Payments users in the United States, with plans for future expansion to other regions [2] - This partnership enables merchants to manage all transactions from a single dashboard and offers additional payment options, including PayPal Pay Later and Venmo [2][3] Company and Industry Developments - PayPal will act as a payment service provider (PSP) and will enhance card processing capabilities within Wix Payments, improving conversion rates and profitability for users [3] - The integration aims to provide a faster and more unified checkout experience for merchants, allowing them to manage payments efficiently [3][4] - Wix offers a software-as-a-service (SaaS) platform for website building, while Wix Payments facilitates payment management for small businesses [4][5] Marketing and Consumer Engagement - PayPal's Pay Later service, a buy now, pay later (BNPL) option, has been promoted through an advertising campaign featuring actor Will Ferrell [6] - The integration of PayPal's payment methods into Wix Payments is designed to enhance the checkout experience and enable merchants to receive payments quickly [4][6]

Core Insights - PayPal has expanded its partnership with Wix, integrating its payment solutions into the Wix Payments platform to enhance payment management for merchants [1][2][4] Group 1: Integration Benefits - The integration allows U.S.-based merchants to manage PayPal transactions directly within the Wix Payments dashboard, consolidating reporting, chargebacks, and payouts [2][3] - Merchants can access PayPal's features such as PayPal Pay Later and Venmo, providing customers with more flexible payment options [2][3] Group 2: Operational Efficiency - Funds from PayPal wallet purchases are directly deposited into merchants' Wix Payments accounts, simplifying cash flow reconciliation [3] - PayPal will act as a Payment Service Provider (PSP) within Wix Payments, enhancing card processing capabilities and streamlining the merchant experience [3] Group 3: Strategic Goals - Wix aims to improve user experience and conversion rates by integrating PayPal, allowing for a faster and more unified checkout process [4] - PayPal shares Wix's commitment to helping businesses grow by providing quicker access to capital and enhancing the overall payment experience [4] Group 4: Availability - This integrated solution is currently available to U.S.-based Wix Payments users, with plans for future expansion to other regions [5]

Core Viewpoint - Morgan Stanley's recent report indicates stability in the North American SaaS industry for Q2, but limited potential for upward guidance revisions, which restricts sentiment recovery in the sector [1] SaaS Industry Overview - SaaS stocks have significantly underperformed compared to the broader software industry year-to-date, primarily due to market concerns over AI substitution risks and structural growth slowdown [1] - The EV/S multiple for the next 12 months has compressed by approximately 29%, from 5.8x to 4.5x, while revenue expectations for the next 12 months have only been adjusted down by about 2% [1] - Market expectations for Q2 earnings reports in the SaaS sector are low, and seasonal weakness lacks positive catalysts, making it difficult to overturn bearish sentiment [1][2] CIO Survey Insights - CIO confidence in overall IT budgets has weakened, with the ratio of CIOs expecting to increase budgets dropping to 0.7 from 0.8 in Q1, indicating potential downward risks for enterprise IT budgets in 2025 [2] - Despite macro uncertainties, the survey shows that cyclical pressures on front-end SaaS spending are easing, and investments in generative AI are increasing [2] - The only catalyst that could overturn negative expectations regarding generative AI's impact on software spending during Q2 earnings releases would be upward guidance revisions [2] Company-Specific Insights - **Wix.com**: Valuation is not high, with a conservative outlook for H2; however, accelerated new user growth and new product cycles (Wix Studio, AI integration) are positive factors. Rating: "Overweight," Target Price: $207, representing a 34% upside from the July 21 closing price of $153.96 [3] - **HubSpot**: Channel surveys indicate Q2 performance similar to Q1; despite valuation compression, several growth levers could drive mid-term growth. Rating: "Overweight," Target Price: $752, indicating a 38% upside from the July 21 closing price of $546.64 [3] - **Klaviyo**: Conservative Q2 guidance, but healthy e-commerce demand and small business spending data suggest potential for exceeding market expectations. Rating: "Hold," Target Price: $40, reflecting a 23% upside from the July 21 closing price of $32.51 [3] - **Amplitude**: Expansion of product offerings is expected to enhance market share, and generative AI may accelerate digital product creation, potentially improving market exposure. Rating: "Hold," Target Price: $12, indicating a 5% downside from the July 21 closing price of $12.62 [4]

Core Viewpoint - The article discusses the rapid rise of AI-driven companies and the lucrative opportunities for entrepreneurs in the AI sector, exemplified by the acquisition of Base44 by Wix, highlighting the significant financial rewards and market dynamics in the AI landscape [4][5][9]. Group 1: AI Talent and Market Dynamics - Top AI talents are currently receiving substantial compensation, with Meta hiring four leading AI experts from OpenAI for $100 million each, breaking industry salary ceilings [5]. - The AI sector is characterized by a small number of elite talents, while continuous entrepreneurs are emerging as significant beneficiaries of this market [6][9]. Group 2: Base44 Case Study - Base44, founded by Maor Shlomo, is a no-code application development platform that gained rapid traction, achieving 250,000 users within six months and generating $189,000 in profit by May [11][14][15]. - The company was acquired by Wix for approximately $80 million, with the potential for additional payments based on performance metrics [8][9]. - Shlomo's journey reflects a broader trend among Israeli entrepreneurs who often sell companies at early stages, focusing on innovation and market validation rather than long-term management [19][20]. Group 3: Acquisition Trends in AI - The article notes over 50 acquisitions in the generative AI space this year, with a projected total of 384 AI-related mergers and acquisitions globally in 2024 [24]. - Established companies are increasingly using acquisitions to enhance their technological capabilities, as seen with Wix's strategy to integrate AI tools into its offerings [25][30]. Group 4: Wix's Strategic Moves - Wix, a publicly traded company with over 2.88 million registered users and annual revenue exceeding $1 billion, is actively acquiring AI companies to bolster its product suite [28][29]. - The acquisition of Base44 is part of Wix's broader strategy to innovate online creation tools and reduce reliance on third-party solutions [31][32].

Core Insights - Wix.com Ltd. has launched the AI Visibility Overview, a tool designed to enhance website alignment with Large Language Models (LLMs) like ChatGPT and Gemini, marking a significant step in its Generative Engine Optimization (GEO) initiative [1][3] - This release positions Wix as the first CMS platform to provide native AI visibility capabilities, contributing to its competitive edge in website development and optimization [2][10] - The tool allows brands to monitor their online presence and visibility within AI-generated responses, which is increasingly vital for online success in the era of generative AI [3][5] AI Visibility Overview Features - The AI Visibility Overview helps brands understand their representation in AI responses, enabling actionable steps to enhance visibility and traffic from AI platforms [5][6] - It includes sentiment analysis for real-time brand perception insights and competitive benchmarking tools to compare AI visibility against industry peers [6][10] - Users can quantify the impact of their presence on AI platforms, gaining insights into referral traffic from AI engines [7] Strategic Innovations and Acquisitions - Wix is focusing on strategic investments in AI, including the acquisition of Base44 and Hour One, which enhance its AI capabilities and redefine application development [11][12] - The introduction of Wixel, a next-gen visual design platform, supports Wix's mission to empower creators by simplifying content creation [12][13] - Partnerships, such as with Microsoft to integrate Wixel's tools into Microsoft Copilot, further strengthen Wix's position in the digital design landscape [13] Stock Performance and Market Position - Following the launch of the AI Visibility Overview, Wix's shares increased by 4.2%, closing at $153 on July 16, 2025 [2] - Despite recent innovations, Wix currently holds a Zacks Rank 4 (Sell), with shares declining by 5.9% over the past year, contrasting with a 1.7% decline in the Computers - IT Services industry [14]

Core Insights - Wix.com Ltd. has launched the AI Visibility Overview, a solution aimed at enhancing brand visibility in AI search engines, marking a significant advancement in Generative Engine Optimization (GEO) [1][2] - The tool is designed to help users understand and improve their brand's presence in large language model (LLM)-based search engines, positioning Wix as a leader in AI search optimization [1][2] Company Overview - Wix is recognized as the leading SaaS website builder platform globally, providing a comprehensive suite of tools for users to create, manage, and grow their digital presence [5] - Founded in 2006, Wix offers advanced SEO and marketing tools, enabling users to maintain ownership of their brand and customer relationships [5] AI Visibility Overview Features - The AI Visibility Overview allows users to track how often their website is cited by AI platforms, manage questions related to their business, and monitor brand sentiment across LLMs [6] - Users can benchmark their AI visibility against competitors, identify growth opportunities, and measure traffic driven from AI platforms [6] - The tool is integrated into Wix's existing SEO suite and is accessible through the Analytics dashboard, reflecting the company's commitment to adapting to the evolving search landscape [2][3] Additional Offerings - Wix provides premium eCommerce users with the ability to manage LLMs.txt, facilitating direct communication with LLMs to enhance product visibility in AI-powered search experiences [3] - The AI Visibility Overview is currently available in English and is being rolled out to additional languages, indicating Wix's strategy for broader market reach [4]

Company Performance - Wix.com closed at $149.61, down 1.75% from the previous trading session, underperforming the S&P 500 which gained 0.14% [1] - Over the past month, Wix.com shares increased by 2.13%, lagging behind the Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97% [1] Upcoming Earnings - Analysts expect Wix.com to report earnings of $1.75 per share, reflecting a year-over-year growth of 4.79% [2] - The Zacks Consensus Estimate for revenue is projected at $487.58 million, an increase of 11.89% from the previous year [2] Full Year Estimates - For the full year, analysts anticipate earnings of $7.13 per share and revenue of $1.98 billion, indicating changes of +11.58% and +12.7% respectively from last year [3] Analyst Estimates - Recent changes to analyst estimates for Wix.com indicate a positive outlook on the company's business operations and profit generation capabilities [4] Zacks Rank - Wix.com currently holds a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the past month [6] Valuation Metrics - Wix.com has a Forward P/E ratio of 21.36, which is higher than the industry average of 19.05 [7] - The company has a PEG ratio of 1.03, compared to the industry average PEG ratio of 2.02 [7] Industry Context - The Computers - IT Services industry, part of the Computer and Technology sector, ranks in the top 32% of all industries according to the Zacks Industry Rank [8]