Wix: A Most Promising Turn-Up for the Discerning Investor

by

The modern world, you see, is rather frightfully keen on these Artificial Intelligences. A bit like a particularly enthusiastic aunt with a new hobby, really. And naturally, this has caused a spot of bother for certain software companies, investors becoming distinctly jumpy at the thought of these digital brainboxes rendering their investments rather… unnecessary. A dashedly awkward predicament, wouldn’t you agree?

Now, one firm that’s taken a bit of a tumble in all this is Wix (WIX +4.65%), purveyors of remarkably simple website construction. But, as any sensible fellow knows, when life hands you lemons—or, in this case, slightly unnerving AI advancements—you don’t simply frown. You make lemonade, or, in Wix’s case, a rather ingenious leap into the world of ‘vibe coding’. They’ve been adding AI enhancements with a commendable spirit, and a recent acquisition could prove to be a truly ripping success.

Beyond the Mere Website, What Ho!

Wix, you see, began its journey in the mid-2000s, assisting individuals and small businesses in erecting their digital shopfronts. They became the leading provider of these website-building services, largely thanks to a rather brilliant marketing campaign. It’s a simple principle, really: scaling the business more than compensates for the cost of spreading the word, especially if one maintains a healthy level of customer loyalty—and Wix most certainly does.

In 2023, they introduced Wix Studio, a more powerful toolkit aimed at agencies and freelancers. This has spurred a most agreeable growth in their partner segment, climbing a respectable 24% last quarter. These partners, you see, are also driving the adoption of business solutions, including those involving payments—a most satisfactory state of affairs.

But the truly fascinating development is Wix’s foray into vibe coding. This, for the uninitiated, is the practice of instructing an AI agent to generate code using plain English. Last June, they acquired Base44, a firm specializing in this very thing. And, with a touch of their marketing wizardry, they’ve grown active users more than sevenfold to a staggering 2 million by November. A truly ripping performance, wouldn’t you say?

Loading widget...

Naturally, all this AI innovation comes at a price. Operating and scaling costs are rather substantial at the moment. However, the potential market is enormous, expanding Wix’s operations far beyond the realm of simple websites. If they continue to execute their playbook with such finesse, we can expect strong revenue growth, and their operating margin should improve nicely over the long run as they offer more sophisticated services.

Claude Code and its ilk do pose a challenge, of course. But Wix has a proven track record of capturing significant market share through clever marketing and keeping customers content. We’re already witnessing this in the professional website design arena, and it could easily repeat itself in the app development market, which is poised for a rather spectacular boom with these advancements in vibe coding.

And the truly attractive bit? The stock price. At just 13 times forward earnings, it’s an absolute bargain. A dashedly clever investment, wouldn’t you agree? One feels quite confident that a little judicious investment now could yield a most agreeable return in the not-so-distant future. A positively ripping prospect for the discerning investor.

Read More

2026-01-25 07:02