Shares Wix.com (NASDAQ: WIX ) It fell 18.9% in February, according to data from S&P Global Market Intelligence. Investors fear that artificial intelligence (AI) will disrupt Wix’s original website-building platform, yet when the business reported earnings in early March, it showed strong growth, with the stock reversing all of its losses from February.
Wix stock is still down 73.4% from its all-time high. Here’s why it fell in February before rebounding in March, and whether it’s a buy for your portfolio right now.
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Wix.com is a website building platform that focuses on the individual and small business market, such as a local restaurant. It allows people to easily create their own website without coding, publish it on the website, and add tools like payment processing to make it easier to manage customer relationships.
Over the past few months, investors have feared that software like Wix could be disrupted by AI. Chatbots like Cloud or Gemini can help create website templates easily by chatting with them, which some fear could mean the end of Wix’s subscription business. That’s why the stock fell steadily ahead of its Q4 earnings report on March 4th.
Results were somewhat mixed, with revenues up 14% year-over-year over the period, and healthy cash flow. Wix’s business is also benefiting from the rapid growth of its recent acquisition of Base44, an app-building platform built on top of cloud-like AI chatbots. It has already crossed $100 million in annual recurring revenue (ARR).
Management certainly seems to think Wix stock is a good buy right now. It has authorized a share repurchase of up to $2 billion, which it plans to do this year, if possible. Today, Wix has a market cap of only $5 billion, which means it can only retire 40% of its shares in 2026.
The company has the cash flow and balance sheet to do so, meaning it wants to aggressively return capital to shareholders and take advantage of its cheap share price. Currently, the stock has a price-to-free cash flow (P/FCF) of 8.9, making it one of the cheapest software stocks on the market today.
Even after following this earnings report, Wix stock could be a solid buy for any investor’s portfolio in 2026.
