Wix Shares Rally as Major Investment Banks Issue Bullish Price Targets
Wix shares trade near $77 following a turbulent year marked by a $1.6 billion buyback, layoffs, and AI disruptions. Major investment banks Cantor and Oppenheimer issued bullish outperform ratings with targets up to $90.
Wix shares have experienced a volatile rollercoaster ride since the beginning of the year. In March, the Israeli internet company executed a controversial move by repurchasing approximately $1.6 billion of its own shares at a price of $92 per share.
Market Fluctuations and Strategic Shifts
Subsequently, the stock plummeted by more than half to an annual low of around $40 amid a broader sell-off in SaaS (Software-as-a-Service) stocks driven by AI developments. Since then, the stock has doubled amid a sector-wide software recovery, currently trading at approximately $77—reflecting a market capitalization of $3.25 billion and marking a 26% decline since the start of the year.
In May, Wix announced the layoff of 20% of its workforce, amounting to roughly 1,000 employees. The company attributed the move to the shekel-dollar exchange rate, which created structural cost pressures, as well as the necessity to streamline operations for greater agility in the age of AI. Led by CEO Avishai Abrahami, Wix enables users to build and manage websites. In 2025, the company acquired Base44, founded by Maor Shlomo, which allows users to create digital products using natural language without writing code, commonly known as vibe coding.
Growth Engines and Investment Outlook
Base44 has rapidly evolved into a major growth engine for Wix, subsequently launching its own language model named Base1. During recent earnings reports, Wix noted that while Base44 began 2026 with a near-zero Non-GAAP gross margin, it expects to reach 60% in the second half of the year.
"We see potential upside in bookings and revenue growth as foreign exchange headwinds moderate and Base44 momentum remains exceptionally strong."
Cantor investment bank analyst Deepak Mathivanan raised his price target for Wix to $90, representing a 17% premium over the current price, while maintaining an "outperform" rating. Similarly, Oppenheimer updated its recommended Israeli stock list, reinstating Wix with an "outperform" rating and an $85 price target, a 10.4% premium. Analyst Sergey Vastchanok highlighted Wix's 317 million registered users and nearly $2 billion in annual recurring revenue (ARR), pointing to Base44, the AI-driven Wix Harmony editor, and Wix Headless as primary growth catalysts.
