What Happened?
Shares of website building platform Wix (NASDAQ: WIX) jumped 4.4% in the afternoon session after analysts reiterated positive ratings on the stock, highlighting the company's expansion into AI-driven 'vibe coding' technology.
Benchmark reiterated its Buy rating with a $230 price target, pointing to the company's strategic moves into the new technology. Vibe coding involves developing software code by asking an AI program to produce it using natural language. Wix is financially backing Dazl, a vibe coding platform launched by a company co-founder, and also purchased startup Base44 this year to expand its presence in the field. The bullish sentiment is echoed by other analysts, with CFRA upgrading Wix's stock rating from Hold to Buy, and Forbes noting that eight analysts rate the stock a strong buy. This positive outlook is supported by consistent revenue growth and a significant increase in free cash flow.
After the initial pop the shares cooled down to $169.30, up 3.1% from previous close.
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What Is The Market Telling Us
Wix’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 6.7% on the news that the company announced the pricing of an upsized $1 billion convertible senior notes offering and received an analyst upgrade. The debt offering, which was increased from an initial $750 million due to strong demand, carries zero interest and is due in 2030. The notes have a conversion price of approximately $210.49 per share, representing a significant 37.5% premium over the stock's recent closing price. This signals strong investor confidence in Wix's future growth. The company plans to use the proceeds for share repurchases and general corporate purposes. Adding to the positive sentiment, CFRA upgraded Wix's stock to "Buy," forecasting revenue growth of 14% to $2.0 billion in 2025 and another 13% in 2026, citing a strong outlook.
Wix is down 21.8% since the beginning of the year, and at $169.30 per share, it is trading 31.4% below its 52-week high of $246.76 from January 2025. Investors who bought $1,000 worth of Wix’s shares 5 years ago would now be looking at an investment worth $666.27.
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