Core Viewpoint - Wix.com shares experienced a significant decline of 51.6% in 2025, despite steady growth in its website-building platform, primarily due to rising costs and potential disruption from AI technologies [1][2]. Financial Performance - Wix.com has shown remarkable revenue growth of 7,740% since 2011, recently approaching $2 billion [3]. - The company is projected to achieve double-digit revenue and bookings growth in 2025, with free cash flow exceeding $500 million in the last twelve months, indicating strong underlying profitability [7]. AI Disruption and Strategic Response - The rise of AI tools poses a threat to Wix's competitive advantage, as modern coding tools allow users to create websites through simple voice commands, potentially lowering subscription costs [4][8]. - In response, Wix.com has acquired Base 44, an AI vibe-coding tool, which is expected to significantly contribute to its revenue, with projected annual recurring revenue (ARR) reaching $50 million by the end of 2025 [5]. Market Position and Investment Opportunity - Following the stock's decline, Wix.com now has a market capitalization of $5 billion, trading at under 10 times its trailing free cash flow, presenting a potential buying opportunity for investors [9].
Why Shares of Wix.com Stock Collapsed In 2025