Wix Stock Tumbles 50% in One Year — But Is Vibe-Coding AI Platform Base44 the Reason This Fund Is Doubling Down?

New York City-based Senvest Management disclosed a significant purchase of Wix.com shares in a November 14 SEC filing, increasing its position by $118.7 million.

What Happened

According to a filing with the Securities and Exchange Commission dated November 14, Senvest Management increased its stake in Wix.com Ltd. (NASDAQ:WIX) by 447,765 shares during the third quarter. The post-trade position stands at nearly 2.5 million shares valued at $442.1 million as of September 30. The value change for Senvest's Wix.com position was approximately $118.7 million from quarter to quarter.

What Else to Know

Senvest's Wix.com position now represents about 14.2% of 13F assets under management.

Top holdings after the filing:

• NASDAQ: WIX: $442.1 million (14.2% of AUM)
• NASDAQ: TSEM: $405 million (13% of AUM)
• NYSE: EPAM: $146 million (4.7% of AUM)
• NYSE: PATH: $145.3 million (4.7% of AUM)
• NASDAQ: ILMN: $134 million (4.3% of AUM)

As of Tuesday, shares of Wix.com Ltd. were priced at $105.46, down a staggering 51% over the past year and vastly underperforming the S&P 500, which is up 13% in the same period.

Company Overview

Company Snapshot

• Wix.com offers a cloud-based platform for website and web application creation, including Wix Editor, Wix ADI, Corvid by Wix, Ascend by Wix, Wix Logo Maker, Wix Answers, Wix Payments, and a marketplace for third-party apps.
• The company generates revenue through premium subscriptions and a range of value-added business solutions, including paid app services.
• It serves individuals, small businesses, and enterprises globally, with a focus on customers seeking user-friendly website development and digital business management tools.

Wix.com Ltd. is a provider of cloud-based website development and business management solutions. The company’s scalable platform and diverse suite of integrated tools enable users to build, manage, and grow their online presence efficiently. By combining a robust freemium model with innovative product offerings, Wix.com maintains a strong competitive position in the website infrastructure and digital commerce market.

Foolish Take

Despite Wix’s deep slide from 2021 highs, Senvest’s aggressive loading up on shares suggests the fund still sees long-term compounding potential in a business that is stabilizing fundamentals and rebuilding momentum. Wix’s latest quarter showed accelerating 14% revenue and bookings growth, supported by strong cohort behavior and outsized traction from its new Base44 AI development platform, which is on track to exceed $50 million in ARR by year-end. The company also generated $127 million in free cash flow in the third quarter and executed $175 million of share repurchases, signaling confidence in future cash generation.

For Senvest, which concentrates capital in high-conviction tech bets, increasing Wix to 14.2% of AUM elevates it alongside core positions like Tower Semiconductor and EPAM. That level of sizing typically reflects a multiyear view rather than a short-term trade, especially as Wix invests to turn Base44 into a meaningful growth engine next year and beyond.

Ultimately, Wix is still volatile and deeply underwater, but its fundamentals are re-accelerating, free cash flow is strong, and management is leaning into high-ROI AI initiatives. For believers in a durable turnaround, Senvest’s conviction may signal that the reset is already underway.

Glossary

13F reportable assets: Assets disclosed by institutional investment managers in quarterly SEC filings, showing U.S. equity holdings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by an investment firm.
Stake: The amount of ownership or investment an entity holds in a particular company or asset.
Freemium model: A business strategy offering basic services for free while charging for premium features or upgrades.
Value-added business solutions: Additional services or products that enhance the core offering, often generating extra revenue.
Premium subscriptions: Paid plans offering enhanced features or services beyond a company's free basic offering.
Third-party apps: Software applications developed by external providers that integrate with a company's main platform.
Cloud-based platform: Technology services delivered over the internet, allowing users to access software and data remotely.
Integrated tools: Multiple software features or services combined within a single platform for seamless user experience.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends EPAM Systems, UiPath, and Wix.com. The Motley Fool recommends Illumina. The Motley Fool has a disclosure policy.