Why Wix Stock Popped Today
Key Points
A recent acquisition is fueling Wix's growth.
Management says the company's latest product launches are "gamechangers."
- 10 stocks we like better than Wix.com ›
Shares of Wix.com (NASDAQ: WIX) rallied on Wednesday after the cloud-based web development specialist highlighted the success of its artificial intelligence (AI) initiatives.
By the close of trading, Wix's stock price was up more than 12%.
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Wix's AI advancements
Wix's revenue rose 14% year over year to $524.3 million in the fourth quarter.
The company's creative subscriptions revenue, which includes sales of its website-building tools, increased 12% to $370.4 million. Its business solutions revenue, which Wix generates from a broad range of marketing and e-commerce offerings, jumped 18% to $153.8 million.
Wix is seeing strong demand for its AI-powered tools. In June, it acquired vibe coding platform Base44 for $80 million plus future earn-out payments. And in January, Wix launched Harmony, a hybrid website builder that combines the company's intuitive drag‑and‑drop controls with agentic AI technology.
"We believe deeply that Harmony and Base44 are gamechangers, the first major steps in our mission to reshape how people create in an AI world and the foundational pillars of Wix's growth ahead," Wix president Nir Zohar said.
Zohar went on to note that institutional investors led by Durable Capital Partners agreed to make $250 million in equity investments in Wix, signaling their confidence in its AI-driven expansion strategy.
Wix's strong cash generation likely also played a part. The company produced $155.6 million in free cash flow in the fourth quarter.
More AI-fueled gains to come
Looking ahead, Wix projects mid-teens percentage revenue growth in 2026.
"We expect 2026 to be a pivotal year as we make category-defining innovations and expand our leadership across the broader online ecosystem as AI tech increasingly makes the impossible now possible, setting the foundation for long-term growth acceleration," chief financial officer Lior Shemesh said.
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Joe Tenebruso 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.
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