Key Highlights
- Wedbush elevated WIX’s price target from $55 to $80 while maintaining a Neutral stance
- Base1, Wix’s proprietary LLM, debuted in June 2026, with Base44 non-GAAP gross margins projected at approximately 60% during 2H26
- The Partner Program delivered 17% revenue expansion compared to the prior year in Q2
- Company leadership intends to channel AI efficiency gains toward sales and marketing initiatives
- Wedbush modestly lowered Q3 revenue projection to $567M while increasing GAAP gross profit forecast to $380M
Shares of Wix.com (WIX) experienced upward movement following Wedbush’s decision to elevate its price objective to $80 from the previous $55, driven by recent quarterly performance highlighting enhanced gross margins and sustained Partner Program expansion.
According to Wedbush analyst Ygal Arounian, the Base44 platform is projected to achieve non-GAAP gross margins of roughly 60% during the latter half of 2026. This marks a significant improvement from levels approaching zero at the year’s beginning. The enhancement is anticipated to contribute approximately 2 percentage points to overall non-GAAP gross margins in 2H compared to 1H.
In June 2026, Wix introduced Base1, its proprietary large language model developed in-house. Company executives indicated that substantial traffic volumes are now operating on non-frontier models, contributing to meaningful cost reductions.
Notwithstanding the margin improvements, Wedbush maintained its Neutral position on the equity. The firm increased its Q3 GAAP gross profit projection to $380M from $370M while slightly reducing its Q3 revenue forecast to $567M from $569M.
Partner Program Records 17% Annual Growth
Wix’s Partner Program achieved 17% revenue growth on a year-over-year basis during Q2. This initiative caters to agencies and independent professionals, offering advantages such as priority support, revenue-sharing arrangements, and client referrals via the Wix Marketplace.
While certain partners reduced their engagement with Wix during Q2, presumably transitioning toward alternative vibe-coding platforms, numerous others expanded their Base44 activities, partially compensating for the departure.
Company executives announced plans to redirect cost savings achieved through non-frontier AI model utilization into sales and marketing efforts. The objective is to expand market capture for Base44.
AI Enhancements Fuel Market Enthusiasm
Market sentiment strengthened after leadership upgraded full-year projections for both revenue and free cash flow, citing robust demand for its artificial intelligence capabilities and the Wix Studio platform. The revised guidance generated significant trading volume in the shares.
The subscription-driven revenue structure provides Wix with greater cash flow predictability. This stability has facilitated continued capital allocation toward AI development and business service offerings.
However, the organization faces elevated debt obligations and a negative equity position. Should customer retention rates deteriorate or AI expenditures escalate, this financial leverage could negatively impact profitability.
WIX stock has declined 29% year to date, currently carrying a market capitalization of $3.1 billion with average daily trading volume near 1.68 million shares.
Wedbush’s adjusted price objective of $80 reflects the firm’s reassessment following Q2 earnings and the enhanced margin trajectory.
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