Assessing Wix.com (WIX) Valuation After New Google And QuickBooks Integrations

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St’s investing ideas for FREE. Wix.com (NasdaqGS:WIX) has rolled out new links between its platform and two major ecosystems, tying Wix Bookings into Google Search, Google Maps and Google AI Mode, while deepening its QuickBooks Online integration with Intuit. See our…


Assessing Wix.com (WIX) Valuation After New Google And QuickBooks Integrations
Assessing Wix.com (WIX) Valuation After New Google And QuickBooks Integrations

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St’s investing ideas for FREE.

Wix.com (NasdaqGS:WIX) has rolled out new links between its platform and two major ecosystems, tying Wix Bookings into Google Search, Google Maps and Google AI Mode, while deepening its QuickBooks Online integration with Intuit.

See our latest analysis for Wix.com.

Despite the new AI and accounting integrations, Wix.com’s 1-day share price return of 8.69% and 7-day gain of 6.88% come after a much weaker run. The company reported a 30-day share price decline of 18.93% and a 1-year total shareholder return of 64.70% in the red, which suggests recent momentum is improving from a low base as investors reassess both growth potential and execution risks.

If this focus on AI tools has your attention, it could be a good moment to broaden your search and look at 61 profitable AI stocks that aren’t just burning cash identified by the Simply Wall St screener.

With Wix trading at US$71.31 alongside an indicated intrinsic discount of 53% and a value score of 4 out of 6, the key question is whether this signals a genuine mispricing or if the market is already factoring in future growth.

With Wix.com closing at $71.31 against a widely followed fair value estimate of $158.20, the leading narrative sees a large valuation gap that hinges on how AI products and Base44 spending play out over time.

The acquisition and rapid scale of Base44 is opening new addressable markets beyond traditional website building, such as application and prototype development, broadening total addressable market and further diversifying revenue streams.

Read the complete narrative.

Want to see what is really behind that valuation gap? The most popular narrative leans on faster earnings, firmer margins, and a future profit multiple that assumes Wix earns a premium tech status. Curious which specific growth and profitability targets have to line up for that to hold?

Result: Fair Value of $158.20 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this hinges on AI tools and Base44 spend paying off, while higher R&D and marketing costs or rising competition could easily weaken that upside story.

Find out about the key risks to this Wix.com narrative.

If this mix of risks and rewards feels finely balanced, take a moment to look through the numbers yourself and form a clear view. Then round out your assessment by checking the 3 key rewards and 2 important warning signs that our team has highlighted.

Before you move on, give yourself the chance to spot a few opportunities you might be missing by scanning other stocks with strong fundamentals and distinct income profiles.

  • Target stability first by scanning resilient businesses using our 80 resilient stocks with low risk scores, which may suit investors who want fewer surprises in their portfolio.

  • Hunt for potential mispriced opportunities through our 53 high quality undervalued stocks, which focuses on companies with solid fundamentals at prices that may look appealing.

  • Strengthen your income stream with our 15 dividend fortresses, which highlights companies offering higher yields with a focus on consistency.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include WIX.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Source link