Core Viewpoint - Wix.com Ltd. (NASDAQ:WIX) is recognized as a strong investment opportunity within the consumer cyclical sector, particularly due to its innovative AI-driven website development services [1]. Group 1: Financial Performance - Wix.com Ltd. reported a significant increase in its share price target from Barclays, rising from $184 to $236, indicating strong growth in business and partner products [2]. - The company's free cash flow margin is approaching 30%, reflecting healthy financial performance [2]. Group 2: Hedge Fund Activity - In the third quarter, 71 hedge funds disclosed holdings in Wix.com Ltd., with Rima Senvest Management notably increasing its position by 22% [3]. Group 3: Strategic Acquisitions - The management highlighted the positive impact of the Base 44 acquisition, stating it has exceeded initial demand expectations and is expected to be a significant growth driver for the company [3].

Core Insights - Wix.com Ltd. (NASDAQ: WIX) is experiencing strong momentum with its Base44 platform, leading to high analyst confidence and a consensus Buy rating from over 90% of analysts [2] - The company reported a 14% year-over-year revenue growth in Q3 2025, reaching $505.2 million, driven by Creative Subscriptions and Business Solutions [3] - Wix.com executed $175 million in share repurchases and updated its full-year revenue guidance to $1.99-2.00 billion, projecting bookings at $2.060-2.078 billion [5] Financial Performance - Q3 2025 revenue was $505.2 million, with Creative Subscriptions revenue at $356.2 million (up 12% YoY) and Business Solutions revenue at $149.0 million (up 18% YoY) [3] - Non-GAAP net income was $100.2 million, or $1.68 per diluted share, while the company recorded a GAAP net loss of $0.6 million [3] Strategic Initiatives - Management is confident in the Base44 platform's growth, prompting increased marketing investments with strong returns [4] - The CFO reaffirmed that strategic investments will solidify Base44 as a key growth driver in 2026 [4] Analyst Ratings - UBS reiterated a "Buy" rating with a price target of $170 following the Q3 results announcement [2] - Needham's analyst also reiterated a "Buy" rating, acknowledging the potential of Base44 despite it being early to predict its long-term revenue impact [4]

Core Insights - Wix.com Ltd. is considered one of the best upside stocks to buy currently, despite a recent price target reduction from $220 to $160 by Oppenheimer analyst Ken Wong, who maintains an Outperform rating on the shares [1][2] - The company's Q3 2025 performance showed a 14% year-over-year increase in total bookings to $515 million and total revenue also increased by 14% to $505 million, driven by the strong performance of its Base44 product [3] Financial Performance - Total bookings for Q3 2025 reached $515 million, marking a 14% increase year-over-year [3] - Total revenue for the same period was $505 million, also reflecting a 14% year-over-year growth [3] - Base44, a recent acquisition, attracted over $2 million in users and is projected to achieve at least $50 million in annual recurring revenue (ARR) by year-end [3] Investment Considerations - The market reacted negatively to Wix's performance due to higher-than-expected costs related to AI development and increased sales and marketing investments for Base44, which were anticipated to remain flat [2][3] - Despite short-term spending concerns, there is optimism regarding Wix's core business and its potential for AI monetization leading into 2026 [2]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's financial health and future growth potential [4] - Momentum Score capitalizes on price trends and earnings outlook [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 top-rated stocks available, making it essential for investors to utilize Style Scores for better selection [9] Stock Analysis: Wix.com - Wix.com Ltd. is a cloud-based web development platform that provides tools for businesses to create and manage their online presence [12] - Currently rated 3 (Hold) by Zacks, Wix has a VGM Score of A and a Growth Style Score of A, indicating potential for growth [13] - The company is projected to achieve a year-over-year earnings growth of 5.8% for the current fiscal year, with a recent upward revision in earnings estimates [13][14]

Core Insights - RBC Capital analyst Brad Erickson has reduced the price target for Wix.com (WIX) from $210 to $190 while maintaining an Outperform rating on the shares [1] - The company's Q3 performance was challenging, primarily due to Vibe coding impacting margins more than anticipated [1] - The top-line results do not fully reflect incremental growth, indicating potential underlying issues [1] Financial Performance - Management noted that Base44 significantly contributed to the Creative Subscriptions segment, which led to an upward revision in bookings guidance [1] - This suggests that core Creative Subscriptions may have slightly underperformed expectations [1]

Company Overview - Wix.com is a prominent player in the website development industry, offering a user-friendly platform for website creation without coding skills [1] Market Sentiment - Scotiabank has set a bullish price target of $175 for WIX, suggesting a potential upside of 76.14% from its current trading price of $99.35 [2] - The average brokerage recommendation for WIX is 1.38, indicating a consensus between Strong Buy and Buy, with 18 out of 24 brokerage firms rating it as Strong Buy and 3 as Buy [2][3] Stock Performance - Despite the positive outlook, WIX's stock price has recently decreased to approximately $97.92, reflecting a decline of about 3.72% [3] - Over the past year, WIX's stock has experienced significant volatility, reaching a peak of $247.11 and a low of $97.71 [4] - The company has a market capitalization of roughly $5.45 billion, indicating its substantial market presence [4] - WIX has a trading volume of 1,172,984 shares, highlighting considerable investor interest [4]

Core Insights - Wix.com is a significant player in the SaaS industry, providing user-friendly web development tools, but faces competition from platforms like Squarespace and WordPress [1] - Cantor Fitzgerald maintained an "Overweight" rating for Wix while adjusting its price target from $160 to $135 amid a 21.7% stock decline [2][6] - Despite a 14% year-over-year revenue increase in Q3, reaching $505.2 million, Wix's stock hit a two-year low due to investor concerns over a delayed flagship product [3][6] Financial Performance - Wix reported Q3 revenue of $505.2 million, a 14% increase year-over-year, with adjusted earnings per diluted share rising to $1.68, exceeding analysts' expectations [3] - Revenue from Creative Subscriptions increased by 12% to $356.2 million, indicating robust performance in this segment [5] Stock Performance - Wix's stock has entered a bear market, dropping over 48% from its peak earlier in the year, with a current price of $101.70, reflecting a decrease of 19.87% [5] - The stock's decline is attributed to rising operating expenses, including costs related to AI developments and increased marketing investments [4][6] - A recent $1 billion convertible notes offering has raised concerns about potential share dilution, contributing to the stock's downward trend [4]

Financial Performance - Wix.com reported quarterly earnings of $1.68 per share, exceeding the analyst consensus estimate of $1.47 per share [1] - The company achieved quarterly sales of $505.194 million, surpassing the analyst consensus estimate of $502.682 million [1] - Wix.com raised its FY2025 sales guidance from $1.975 billion-$2.000 billion to $1.990 billion-$2.000 billion [1] Strategic Initiatives - The CEO of Wix, Avishai Abrahami, emphasized the company's mission to democratize technology through advanced AI and natural-language development with the introduction of Base44 [2] - The company aims to eliminate barriers of complexity in accessing advanced technology [2] Analyst Reactions - Needham analyst Bernie McTernan maintained a Buy rating on Wix.com but lowered the price target from $200 to $140 [5] - Citizens analyst Andrew Boone maintained a Market Outperform rating and cut the price target from $210 to $185 [5] - Benchmark analyst Mark Zgutowicz also maintained a Buy rating while lowering the price target from $230 to $185 [5]

Core Insights - Wix.Com Ltd reported better-than-expected earnings for Q3, with earnings of $1.68 per share, surpassing the analyst consensus estimate of $1.47 per share [1] - The company achieved quarterly sales of $505.194 million, exceeding the analyst consensus estimate of $502.682 million [1] - Wix.com raised its FY2025 sales guidance from a range of $1.975 billion-$2.000 billion to $1.990 billion-$2.000 billion [1] Company Developments - CEO Avishai Abrahami emphasized the company's mission to democratize technology through advanced AI and natural-language development with the introduction of Base44 [2] - Following the earnings announcement, Wix.com shares rose by 1.2% to $102.90 in pre-market trading [2] Analyst Reactions - Needham analyst Bernie McTernan maintained a Buy rating on Wix.com but lowered the price target from $200 to $140 [5] - Citizens analyst Andrew Boone maintained a Market Outperform rating and cut the price target from $210 to $185 [5] - Benchmark analyst Mark Zgutowicz also maintained a Buy rating while lowering the price target from $230 to $185 [5]

Core Viewpoint - Wix.com raised its full-year bookings and revenue outlook following strong third-quarter results, driven by increased demand from its AI coding platform Base44, despite a significant drop in share price [1][2]. Financial Performance - For 2025, Wix expects bookings to be between $2.06 billion and $2.08 billion, an increase from the previous range of $2.04 billion to $2.08 billion [2]. - The full-year revenue forecast has been raised to $1.99 billion to $2.00 billion, compared to the earlier guidance of $1.98 billion to $2.00 billion [2]. - Third-quarter revenue was reported at $505.2 million, with total bookings rising to $514.5 million [4]. Growth Metrics - For the fourth quarter, Wix projects revenue between $521 million and $531 million, indicating a year-over-year growth of 13% to 15% [3]. - Creative Subscriptions revenue increased by 12% to $356.2 million, while Business Solutions revenue grew by 18% to $149 million [4]. - Creative Subscriptions annual recurring revenue reached $1.48 billion, reflecting an 11% year-over-year increase [4]. Cost and Margin Expectations - The non-GAAP gross margin for the year is expected to be between 68% and 69%, influenced by increased AI-related costs from Base44 [3]. - Non-GAAP operating expenses are projected to be approximately 50% of revenue, with free cash flow expected to reach about $600 million, or around 30% of revenue [3].