Key Takeaways:
- Wix.com's strategic acquisition of Base44 leverages AI for software development.
- Analysts forecast significant upside potential with a price target averaging $223.63.
- GuruFocus estimates a potential downside, suggesting a nuanced investment outlook.
Wix.com (WIX, Financial) has strategically enhanced its capabilities by acquiring Base44, a platform that employs AI to empower custom software development with natural language instructions. The acquisition, initially valued at $80 million, includes performance-based earn-outs extending through 2029. While Wix expects minimal revenue impact from this acquisition by 2025, the company will incur $25 million in retention bonuses for Base44 employees.
Analyzing Wall Street's Forecast
According to projections from 21 analysts, the average one-year price target for Wix.com Ltd (WIX, Financial) stands at $223.63, with estimates ranging from a high of $250.00 to a low of $168.32. The consensus suggests an impressive upside of 45.24% from its current market price of $153.98. For more in-depth insights, visit the Wix.com Ltd (WIX) Forecast page.
The consensus recommendation from 25 brokerage firms places Wix.com Ltd (WIX, Financial) at an average rating of 1.9. This figure points to an "Outperform" status on a scale where 1 indicates Strong Buy and 5 denotes Sell.
Understanding GuruFocus's Perspective
In contrast, GuruFocus's estimate presents a more cautious outlook. The calculated GF Value for Wix.com Ltd (WIX, Financial) after one year is $137.80, suggesting a possible downside of 10.51% from its current share price of $153.98. This GF Value is derived from historical trading multiples, past business growth, and projected future performance. For comprehensive details, explore the Wix.com Ltd (WIX) Summary page.
