Wix.com (WIX) Stock Forecast & Price Target

Wix.com has demonstrated strong momentum in its business solutions segment, particularly with the Base44 offering, which has seen significant user growth, adding over 1 million new users in Q3 and more than 1,000 subscribers daily. The company's revenue guidance has been positively adjusted, reflecting an estimated increase of approximately $15 million at the low end and $11.5 million in bookings at the midpoint, both surpassing expectations. Furthermore, Wix's anticipated 15.7% revenue growth for 2026, an acceleration of 240 basis points compared to the previous year, underscores a robust outlook for continued financial performance.

Wix.com faces a negative outlook primarily due to significant implied gross margin degradation and declining free cash flow (FCF) projections, with a noted reduction of approximately 15% driven by increased investments in its Base44 initiative. The company's expectation of a -20 basis points quarter-over-quarter deceleration in its core revenue growth indicates potential struggles to sustain momentum amidst these challenges. Furthermore, the anticipated short-term headwinds related to upfront AI and compute costs, coupled with revenue guidance that fell short of investor expectations, suggest mounting pressure on Wix's profitability and overall financial health.