TLDR
- Wedbush raised its price target on WIX to $80 from $55 while keeping a Neutral rating
- Wix’s internally trained LLM, Base1, launched in June 2026, with Base44 non-GAAP gross margins expected at ~60% in 2H26
- Partner Program revenue grew 17% year over year in Q2
- Management plans to reinvest AI cost savings into sales and marketing
- Wedbush nudged Q3 revenue estimate down slightly to $567M but raised GAAP gross profit estimate to $380M
Wix.com (WIX) stock got a boost after Wedbush raised its price target to $80 from $55, following the company’s latest earnings results that showed improving gross margins and continued growth in its Partner Program.
Wedbush analyst Ygal Arounian noted that Wix’s Base44 platform is expected to reach a non-GAAP gross margin of approximately 60% in the second half of 2026. That is up from near-zero at the start of the year. The improvement is expected to add around 2 percentage points to consolidated non-GAAP gross margins in 2H versus 1H.
Wix launched Base1, its internally trained large language model, in June 2026. Management said a large volume of traffic is already running on non-frontier models, which is helping to bring costs down.
Despite the margin gains, Wedbush held its Neutral rating on the stock. The firm raised its Q3 GAAP gross profit estimate to $380M from $370M but trimmed its Q3 revenue estimate slightly to $567M from $569M.
Partner Program Grows 17% Year Over Year
Wix’s Partner Program posted 17% revenue growth year over year in Q2. The program serves agencies and freelancers with benefits including priority support, revenue share opportunities, and client leads through the Wix Marketplace.
Some partners did pull back activity on Wix during Q2, likely moving toward other vibe-coding tools. But many others increased their activity on Base44, partially offsetting that shift.
Management said it plans to take the savings generated by running on non-frontier AI models and reinvest them into sales and marketing. The goal is to capture more demand for Base44.
AI Upgrade Drives Investor Optimism
Investor confidence picked up after management raised its full-year outlook for revenue and free cash flow, pointing to demand for its AI tools and the Wix Studio platform. The updated guidance sparked heavy trading activity in the stock.
Wix’s subscription-based revenue model gives it a more predictable cash flow stream. That has helped support ongoing investment in AI features and business services.
That said, the company carries rising debt levels and a negative equity position. If customer renewal trends weaken or AI spending increases, that leverage could put pressure on earnings.
WIX stock is down 29% year to date, with a current market cap of $3.1 billion and an average daily trading volume of around 1.68 million.
Wedbush’s revised price target of $80 represents the firm’s updated view following the Q2 results and improved margin outlook.
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