Shares of Wix.com (NASDAQ: WIX) fell 18.9% in February, according to data from S&P Global Market Intelligence. Investors have feared that artificial intelligence (AI) will disrupt Wix’s core website-building platform, yet when the business reported earnings in early March, it showed strong growth, leading the stock to rebound all its losses from February.
Wix’s stock is still down 73.4% from all-time highs. Here’s why it fell in February before rebounding in March, and whether it is a buy for your portfolio right now.
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Wix.com is a website-building platform that has focused on the individual and small-business market, such as a local restaurant. It allows people to easily build their own website without coding, publish it on the web, and add tools such as payment processing to make it easier to manage customer relationships.
Over the last few months, investors have feared that software such as Wix could be disrupted by AI. Chatbots like Claude or Gemini can help build website templates very easily by just having a conversation with them, which some fear could mean the end of Wix’s subscription business. This is why the stock was consistently dropping leading into its Q4 earnings report on March 4th.
The results spoke a slightly different tune, with revenue growing 14% year-over-year during the period, and with healthy cash flow. Wix’s business is also benefiting from the fast growth of its recent acquisition of Base44, an application-building platform built on top of AI chatbots like Claude. It has already surpassed $100 million in annual recurring revenue (ARR).
Management certainly seems to think Wix stock is a good buy right now. It has authorized the repurchase of up to $2 billion in shares, which it plans to do this calendar year, if possible. Today, Wix has a market cap of just $5 billion, meaning it could retire 40% of its shares outstanding in 2026 alone.
The company has the cash flow and balance sheet to do it, meaning it wants to aggressively return capital to shareholders and take advantage of this 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 rebounding following this earnings report, Wix stock could be a solid buy for any investor’s portfolio in 2026.
