Shares of Wix.com (NASDAQ: WIX) rose more than 60% in August, according to data from S&P Global Market Intelligence. The website‑building platform, previously viewed as an AI laggard, saw that perception flip this summer as the company delivered solid revenue growth and significant margin expansion for its new AI‑driven application builder.
Here’s why Wix shares climbed in August and whether the stock remains attractive.
Software rebound
The catalyst for Wix’s sharp rise last month was its early‑month earnings report. Investors had punished the stock, pushing it from near $200 in September of the prior year to below $50 by July’s end, based on fears that emerging generative AI tools would erode its website‑building business.
So far, Wix’s results show no sign of AI fatigue. Revenue increased 15% year‑over‑year to $563.1 million in the last quarter, with all segments posting double‑digit growth. Management noted that its rapidly expanding application builder, Base44, is on track to achieve roughly 60% gross margins, up from near zero at the start of the year.
Later in the month, Wix confirmed that Base44’s annual recurring revenue (ARR) exceeded $200 million, up from $100 million five months earlier. This positions Base44 among the fastest‑growing AI businesses worldwide and could become a valuable long‑term asset for Wix.
Image source: Getty Images.
Still time to buy?
After the August rally, Wix’s market capitalization stands at about $3.6 billion. The company bought back $1.6 billion of its shares in a spring tender offer, sharply reducing the share count, yet the stock remains roughly 75% below its 2021 peak.
Wix posted a loss in 2026 as it funneled heavy investment into Base44 and its proprietary AI website builder, Wix Harmony. Looking ahead, the strong margins of its legacy platform combined with improving profitability in its AI divisions should drive sustainable earnings and free cash flow.
Over the past twelve months, Wix generated $2.1 billion in revenue. Assuming a 15% annual growth rate, revenue could surpass $3 billion in three years. If net margins expand to 20%, that would translate to roughly $600 million in yearly earnings—about six times the current market cap.
For investors with a multi‑year outlook, Wix shares still appear attractively priced.
