Base44 brings vibe-coding app creation to the biggest advertising stage NEW YORK – Base44, the AI-powered platform that lets users build fully functioning apps in minutes, today announced that it will air its first-ever Super Bowl campaign during the Super Bowl LX broadcast on Sunday, February 8, 2026. “The pace of growth at Base44 over the past year has been extraordinary, and appearing during the Big Game is a marker of that momentum,” said Shay Korin, VP Marketing of Base44. “In less than a year, Base44 ...

Core Viewpoint - Wix.com Ltd. has authorized a $2 billion repurchase program for its securities over a two-year period, reflecting the Board's confidence in the company's cash flow generation and commitment to enhancing shareholder value [1]. Group 1: Repurchase Program Details - The repurchase program allows for the buyback of company securities through various methods, including open market purchases and privately negotiated transactions, in compliance with U.S. securities laws [2]. - The program does not obligate the company to repurchase a specific amount of securities and can be suspended or discontinued at the company's discretion [2]. - Repurchases may begin after a 30-day period for creditors to object, and the timing and amount of repurchases will depend on market conditions and the company's financial situation [2]. Group 2: Company Overview - Wix is a global platform established in 2006, enabling users to create and manage their digital presence with advanced AI and robust business solutions [4]. - The platform serves millions of users, including self-creators and enterprises, and focuses on providing intuitive tools for building brands and scaling businesses online [4].

Core Insights - Wix.com Limited (NASDAQ:WIX) is identified as one of the 10 cheap stocks with significant upside potential, despite recent price target reductions by analysts [1] - The stock has experienced a 62% decline over the past year due to financial pressures related to the development of new AI tools, but has gained over 15% in the last three trading sessions following the announcement of a new AI website builder [2] - The newly launched AI website builder, 'Wix Harmony', allows users to create and edit enterprise-grade websites using natural language prompts, addressing previous limitations such as security vulnerabilities and basic design options [3] Price Target Adjustments - Citizens lowered its price target for Wix from $185 to $125, indicating a 41% upside potential from the current price [1] - Barclays also reduced its price target by $5 from $210, reflecting a cautious outlook while still acknowledging potential for growth [1] Product Development and Market Position - Wix Harmony enhances user experience by enabling the creation of visually appealing websites without compromising on scalability, security, reliability, and performance [3] - The company has transitioned from being known for simple drag-and-drop website builders to becoming a recognized brand in AI-driven website development [3]

Core Viewpoint - The acquisition of an AI company positions Wix to leverage artificial intelligence in its offerings, making its currently undervalued stock an attractive investment opportunity [1][2]. Company Overview - Wix is a leading software-as-a-service (SaaS) provider for website building, having started in the mid-2000s and becoming the largest in its sector due to effective marketing strategies [3]. - The company has introduced Wix Studio in 2023, targeting agencies and freelancers, which has led to a 24% year-over-year growth in its partners segment [4]. AI Integration and Growth Strategy - Wix is advancing into vibe coding, utilizing AI to generate code from natural-language prompts, and has acquired Base44 to enhance its capabilities in this area [5]. - The active user base for Wix's vibe coding applications grew more than sevenfold to 2 million within a few months of the acquisition [5]. Financial Metrics - Wix's current market capitalization stands at $4.9 billion, with a gross margin of 68.45% [7]. - The stock is trading at 13 times forward earnings expectations, indicating it is undervalued compared to its potential growth [9]. Market Position and Future Prospects - Despite challenges from AI competitors like Claude Code, Wix has a strong track record of gaining market share through effective marketing and customer retention [8]. - The company is well-positioned to capitalize on the expanding app development market driven by advancements in vibe coding [8].

Core Insights - Wix.com Ltd. has launched Wix Harmony, an AI-powered website builder designed for speed, simplicity, and professional-quality results [1][10] - The platform features an AI agent named Aria, which can create scalable websites and understand natural language requests [2][10] Product Features - Wix Harmony allows users to generate entire websites or sections through prompts and refine them using drag-and-drop tools, ensuring fast iteration while maintaining control [4][6] - The platform operates on Wix's enterprise-grade infrastructure, providing 99.99% uptime, professional security, and the capability to support billions of visitors daily [5][10] - Users can create custom native components with built-in logic and editable code through prompts or chat, enhancing the flexibility of website creation [6] Business Performance - Wix is experiencing momentum in its core business, with expectations for Base44 to reach at least $50 million in ARR by 2025 [7] - Bookings for 2025 are projected to be between $2,060 million and $2,078 million, an increase from previous estimates [8] - The company anticipates gross margins of 68-69% due to higher AI costs and expects operating expenses to rise to about 50% of sales as it increases branding and marketing investments [8] Market Position - Wix's stock has declined by 48.4% over the past six months, compared to a 13.7% decline in the Computers - IT Services industry [9]

Group 1 - Wix.com Ltd. will air a TV commercial during the Super Bowl LX on February 8, 2026, showcasing its brand and new platform [1] - The campaign follows the launch of Wix Harmony, which combines AI-powered vibe coding with human control, aiming to enhance web creation [2] - Wix Harmony is designed to bridge speed and creativity with structure and scale, facilitating the transition from inspiration to a business-ready online presence [2] Group 2 - Omer Shai, CMO at Wix, emphasized that the Super Bowl provides a significant platform to demonstrate the integration of AI and human creativity in web creation [3] - Further details about the campaign and its creative direction will be disclosed closer to the Super Bowl event [3] Group 3 - Wix is a global platform founded in 2006, empowering millions of users with tools for creating, managing, and growing a digital presence [4] - The platform offers advanced AI, flexible web design, hosting, and robust business solutions, aiming to help users build stronger brands and connect with audiences [4] - Wix is focused on shaping the future of digital experiences through its intuitive AI-powered website builder and no-code application creation [4]

Core Insights - Wix Harmony is a new flagship AI website builder that combines vibe coding with visual editing capabilities, designed for ease, speed, and professional-grade results [6][10] - The platform is built on Wix's enterprise-grade infrastructure, ensuring reliability and scalability for users [6][9] Group 1: Product Features - At the core of Wix Harmony is Aria, an AI agent that understands natural language and can execute tasks ranging from simple updates to complex redesigns [7][13] - Users can generate entire sites or sections using natural language and refine them visually with drag-and-drop control, allowing seamless transitions between AI-assisted creation and manual editing [13] - Wix Harmony ensures that changes in one section do not disrupt the overall site functionality, maintaining a stable foundation for fast iterations [13] Group 2: Market Positioning - Wix Harmony is positioned to be the leading vibe website platform, bridging the gap between traditional web creation stability and the speed of AI-driven design [5][9] - The platform aims to empower users to create beautiful websites quickly without sacrificing scalability, security, and performance [8][10] Group 3: Infrastructure and Capabilities - Every site created with Wix Harmony operates on Wix's robust infrastructure, which includes advanced commerce, scheduling, and payment capabilities [13] - Wix's infrastructure boasts 99.99% uptime and professional-grade security, capable of supporting billions of visitors daily, making it suitable for real, live businesses [13]

Core Viewpoint - Wix.com Ltd. (WIX) is assigned a buy rating due to solid execution, particularly in the Creative Subscriptions revenue segment and accelerating revenue in the Business Solutions segment [1] Company Performance - The Creative Subscriptions revenue segment shows steady revenue performance, indicating a stable income stream for the company [1] - The Business Solutions segment is experiencing accelerating revenue growth, suggesting a positive trend in this area [1] Analyst's Focus - The analysis encompasses future-oriented industries where culture, technology, and valuation intersect, including digital assets and gaming publishers [1] - The approach combines discounted cash flow (DCF) and relative valuation with macroeconomic and narrative context to identify early positioning in leading companies and assets [1]

Core Viewpoint - Wix.com Ltd. (WIX) is assigned a buy rating due to solid execution, particularly in the Creative Subscriptions revenue segment and accelerating revenue in the Business Solutions segment [1] Company Performance - The Creative Subscriptions revenue segment shows steady revenue performance, indicating a stable business model [1] - The Business Solutions segment is experiencing accelerating revenue growth, suggesting strong demand and effective service offerings [1] Analyst Perspective - The analysis focuses on future-oriented industries where culture, technology, and valuation intersect, highlighting the importance of these factors in investment decisions [1] - The approach combines discounted cash flow (DCF) and relative valuation with macroeconomic and narrative context, aiding in identifying early investment opportunities [1]

Summary of Conference Call Notes Industry Overview - **Industry**: Application Software, specifically focusing on Software as a Service (SaaS) in North America - **2025 Performance**: Application SaaS underperformed due to muted revenue growth, limited upward estimate revisions, and multiple compression driven by AI-related concerns. The valuation discount on application SaaS relative to broader software increased to approximately 37% from 20% a year ago [3][7][21]. Key Insights - **AI Concerns**: Peak AI fears were noted in 2025, leading to a shift in investor sentiment. Companies emphasized competitive advantages such as proprietary data and large installed bases but struggled to improve investor confidence [3][23]. - **Bull Case for 2026**: The bull case hinges on application software becoming the primary delivery mechanism for AI capabilities, potentially expanding the total addressable market and improving growth trajectories. However, the lack of clear growth inflection in 2025 left many vendors perceived as disrupted by AI [3][23][35]. - **CIO Survey Insights**: A survey indicated that 19% of CIOs operationalizing AI/ML technologies view application vendors as primary partners, an increase from 13% in the previous quarter. This suggests a shift in perception towards application software as a vehicle for AI functionalities [26][29]. Investment Recommendations - **Selective Approach**: A selective investment strategy is recommended, favoring companies with strong positioning in the "AI Success Framework" and idiosyncratic growth stories. Preferred companies include HUBS, KVYO, WIX, AMPL, BL, DSGX, and NAVN [2][7][52]. - **Price Target Adjustments**: Price targets for several companies were updated, reflecting changes in growth outlooks and market conditions. For example, HUBS was adjusted to $577, while KVYO was set at $42 [5][54]. Risks and Considerations - **AI Risks**: The report outlines three core areas of AI-related risks: DIY risk, start-up risk, and seat-based model risk. Evidence suggests that fears regarding these risks may be overstated, but ongoing monitoring is necessary [24][26][27]. - **Cyclical Headwinds**: The optimization cycle that began in 2022 is largely digested, with stabilization in key performance indicators like ARR and billings growth. However, broad-based positive spending revisions remain absent, necessitating a cautious approach [35][36]. - **2026 Spending Growth**: Software is expected to see modest growth in spending, projected at 3.8%, compared to declines in hardware and communications sectors. This indicates a relatively healthier positioning for software in IT spending plans [43][44]. Conclusion - **Outlook for 2026**: The outlook for application SaaS in 2026 is cautiously optimistic, with potential for improved sentiment as AI risks are reassessed and growth trajectories begin to stabilize. However, the absence of broad-based positive revisions in spending necessitates a selective investment approach [2][35][52].