A Once-in-a-Decade Investment Opportunity: Buy This Software Stock Right Now

Every software stock is getting tossed around by the market, either determined to be an artificial intelligence (AI) winner or an AI loser. Most are getting put into the AI loser camp, including Wix.com (NASDAQ: WIX). The website-building and small-business management platform is at risk of disruption from new zero-code tools like Claude, which enable people to build their own websites from scratch. Or, at least, that's how the story goes.

But if you look at the underlying business, its core customers, and the new products the company has developed, it is clear that Wix is actually an AI winner.

Here's why buying Wix stock down 73% from recent highs could be a once-in-a-decade investment opportunity.

Image source: Getty Images.

AI winner, or AI loser?

Wix's core business is website building, enabling individuals, small businesses, and third-party design teams to use its tools to build websites. It generates revenue from subscription fees and add-on software, including payment processing for e-commerce transactions.

The platform was the original low-code website creation tool, using prompts and templates for users for a decade. Now, with the rise of AI chatbots, Wix has launched its own vibe coding tool, Wix Harmony, which lets users prompt its chatbot to build a website using Wix's extensive library of website templates.

It is hard to see why a small business owner would suddenly switch their website management platform from Wix to a start-up like Claude to save a few hundred dollars a year, especially when Wix now offers all the same tools. What's more, Wix acquired code-based app builder Base44 last year, which had close to zero in revenue but is now closing in on $50 million to $100 million in annual recurring revenue (ARR).

With the advent of these new AI tools, more websites and mobile applications are being created. With Wix owning its flagship website brand and now Base44 for apps, it should be able to take advantage of this tailwind over the next few years and beyond.

Why Wix stock is cheap right now

Despite this growth potential, Wix is included in a group of software stocks considered AI losers by Wall Street. From a high of $240 at the start of 2025, Wix has now entered a 73% drawdown, trading at $66.

This gives the stock a market cap of $3.7 billion. Over the last 12 months, the business has generated $570 million in free cash flow, or less than 10 times this trailing market cap. With this cash flow, Wix is plowing money into share repurchases, with the board of directors recently authorizing a $2 billion buyback plan.

Combine everything, and Wix.com stock becomes extremely appetizing at today's price.

Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Wix.com. The Motley Fool has a disclosure policy.