Wix.com stock maintains Strong Buy rating at Raymond James ahead of earnings

Published 05/08/2025, 13:48
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Investing.com - Raymond (NSE:RYMD) James has reiterated its Strong Buy rating on Wix.com (NASDAQ:WIX) with a price target of $250.00 ahead of the company’s earnings report on August 6. The stock, currently trading at $131.44, has recently approached its 52-week low of $128.10, potentially presenting an opportunity according to InvestingPro analysis.

The firm expressed a positive tactical bias for Wix.com, citing momentum in Studio and new self-creator products that could lead to improved second-half visibility and a potential beat or raise in the bookings outlook. The company has demonstrated strong fundamentals, with revenue growing at ~13% and maintaining profitability with $148M in net income over the last twelve months.

Raymond James identified three core performance drivers: expanding Studio bookings as editor learning curves improve, AI web search and AI Mode potentially improving top-of-funnel traffic, and self-creator tools benefiting conversion rates initially and average revenue per user in the medium term. Unlock 15+ additional InvestingPro exclusive insights and detailed financial metrics to make better informed investment decisions.

The firm highlighted Wix’s AI tools including AI Marketing Agent, Wix AI Site Chat, and Wixel as contributors to the positive outlook, along with pending Workspace changes that include simplified pricing with Gemini integration for small businesses with 1-10 employees.

Raymond James noted that while the structure of potential 2026 pricing remains unknown, increasing adoption of AI tools could create consumption opportunities through advertising spend take rates and conversations, or possibly evolve into an AI Business subscription tier priced above $40.

In other recent news, Wix.com has announced several developments that could be of interest to investors. The company is set to release its second-quarter earnings report soon, and Benchmark has maintained its Buy rating with a price target of $230.00. Wix has also announced upcoming price increases for its service plans, which will take effect on September 26. In addition, Wix has launched the AI Visibility Overview tool, aimed at helping businesses monitor their brand presence in AI-powered search engines. This tool is part of Wix’s Generative Engine Optimization initiative and is integrated within its existing SEO suite. Furthermore, Wix has expanded its font library through a strategic partnership with Monotype Imaging Inc., adding popular typefaces like Helvetica and Avenir. Another significant development is Wix’s strategic partnership with Alibaba (NYSE:BABA), which aims to enhance global reach for small and medium-sized enterprises. This collaboration will allow Wix merchants to access Alibaba’s wholesale platform and enable Alibaba sellers to build storefronts using Wix technology. Oppenheimer has reiterated an Outperform rating with a $220.00 price target following this partnership announcement.

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