What Happened?
Shares of website building platform Wix (NASDAQ: WIX) jumped 5.3% in the afternoon session after analyst commentary indicated the company plans to prioritize growth over profitability in 2026.
Following meetings with Wix's management, RBC Capital Markets reiterated its "Outperform" rating and a $210 price target on the stock. The investment firm noted that the web development company's philosophy is shifting to focus on growth, driven by new initiatives like its Base44 acquisition and opportunities in "vibe coding." While this strategic pivot is expected to increase marketing spending and temporarily pressure margins, RBC expressed an "incrementally positive" outlook, believing the stock is "likely under-priced heading into 2026." The market appears to agree, building on the stock's recent momentum, which has seen it gain over 32% in the past month. Other analysts, including those at CFRA and Benchmark, have also recently reiterated their own buy ratings, citing the company's strategic moves and growth trajectory.
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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 5 days ago when the stock gained 4.4% as 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.
Wix is down 16.4% since the beginning of the year, and at $181.08 per share, it is trading 26.6% 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 $712.18.
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