Is Wix Stock Undervalued After a 60% Drop in 2026? 

Gian Estrada8 minute read
Reviewed by: David Hanson
Last updated Jun 2, 2026

Key Stats for Wix Stock

  • 52-Week Range: $51 to $191
  • Current Price: $63
  • Street Mean Target: $86
  • Street High Target: $150
  • Analyst Consensus: 9 Buys, 4 Outperforms, 7 Holds, 1 Underperform
  • TIKR Model Target (Dec. 2030): $151

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Wix Stock Drops 50% in 2026, Then Cuts 20% of Staff: Is the Selloff Overdone?

Wix.com (WIX), the Israel-based web creation platform serving hundreds of millions of small businesses worldwide, announced the layoff of roughly 1,000 employees on May 28, representing about 20% of its workforce, as CEO Avishai Abrahami cited a structurally strong Israeli shekel and the accelerating influence of AI on headcount requirements.

Wix stock has fallen nearly 50% year-to-date in 2026, making it one of the worst-performing software names on the Nasdaq.

The shekel has appreciated nearly 30% against the dollar over the past year, reaching a 33-year peak, while the majority of Wix’s cost base is denominated in Israeli currency and the bulk of its revenue is collected in dollars.

CFO Lior Shemesh disclosed a specific $64 million full-year expense headwind from the shekel on the Q1 2026 earnings call, a figure that frames the layoff as a direct structural response rather than a strategic retreat.

The workforce reduction follows a quarter in which Wix reported Q1 revenue of $541 million, up 14% year-over-year, and bookings of $585 million, up 15%.

The company maintained its full-year 2026 guidance for both bookings and revenue growth at mid-teens, with FCF margin excluding acquisition costs expected in the high-teens.

Base44, the AI-powered application creation platform Wix acquired, reached $150 million in annual recurring revenue by mid-May, up from $100 million in early March.

President Nir Zohar told investors on the Q1 call: “By repurchasing nearly 30% of our equity base, we were able to return meaningful value to shareholders. We believe this will prove to be very accretive to our existing shareholder base in the long run as we execute on our strategic plan.”

In April, Wix completed a $1.617 billion modified Dutch auction tender offer, retiring approximately 17.6 million shares at $92 per share, roughly 30% of shares outstanding.

JP Morgan downgraded Wix stock to underweight in late March before the Q1 print, citing concerns about deceleration in core business revenue growth.

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WIX Stock Has 13 Buys but the Mean Target Still Sits Far Below the TIKR Model. Here Is Why That Gap Matters.

The market is reading the layoff announcement as a distress signal, but the analyst community is treating it as cost discipline, and the distinction carries real weight for where Wix stock trades from here.

Street Analysts Target for WIX Stock (TIKR)

Thirteen analysts currently carry buy or outperform ratings on WIX, against seven holds and one underperform, with a mean price target of around $86 representing roughly 37% implied upside from the current price of around $63.

The street’s mean target of around $86 sits well below the $150 high target, a spread that reflects genuine disagreement about whether the Base44 investment cycle will ultimately expand or compress margins.

WIX Stock FCF Actuals & Estimates (TIKR)

The FCF picture is the sharpest way to see the disagreement play out: consensus estimates show FCF of around $0.08 billion in the quarter ending June 2026, recovering to around $0.13 billion by December 2026, then accelerating to around $0.11 billion and around $0.12 billion in the first two quarters of 2027.

That trajectory implies the street expects the Base44 AI compute costs and elevated marketing spend to normalize over the second half of 2026, consistent with management’s own guidance that the large majority of AI costs will come under control as Wix deploys its proprietary LLM across more products.

What the consensus does not yet fully reflect is the per-share math after the buyback: retiring 30% of shares outstanding means FCF per diluted share grows faster than total FCF across every quarter in that recovery path.

The read on the Q1 cohort supports the recovery case rather than the impairment thesis, with new cohort bookings up 46% year-over-year as Harmony drove improved conversion and higher-priced subscription attach from new users.

WIX Generates Less Free Cash Flow Than GoDaddy, but the Gap Is Closing Fast

WIX Stock FCF vs HUBS and GDDY Stock (TIKR)

GoDaddy (GDDY) generated $0.46 billion in FCF in the quarter ending March 2026, against Wix’s $0.07 billion in the same period, a gap that looks wide until the forward estimates show WIX compressing it meaningfully by late 2026.

HubSpot (HUBS) produced $0.15 billion in FCF for the March 2026 quarter, close to Wix’s current run rate once acquisition costs are excluded, which positions the two companies as genuine comparables rather than distant peers on this metric.

By December 2026, consensus estimates place WIX FCF at around $0.13 billion, HUBS at around $0.25 billion, and GDDY at around $0.42 billion, a distribution that reflects Wix absorbing the front-loaded AI compute and marketing investment that its larger peers have either already worked through or never undertaken.

The structural argument for Wix stock is that a leaner post-layoff cost base, combined with declining Base44 inference costs as the company deploys its own LLM, should push WIX’s FCF trajectory steeper than the peer comparison currently implies.

TIKR Values Wix Stock at Around $151: The Layoff Is the Catalyst the Model Was Waiting For

TIKR’s base case values Wix.com at approximately $151 by December 2030, implying around 141% total return from the current price of approximately $63, or roughly 21% annualized over the next 4.6 years.

WIX Stock Valuation Model Results (TIKR)

If revenue growth holds at a mid-teens CAGR (TIKR’s mid case assumes around 13%) and net income margins recover toward approximately 16%, the model reaches around $244 per share by December 2034, a total return near 291% and an IRR near 17%.

If growth slows to around 12% and margins settle near 15%, the low case produces around $181 per share by the same date, still representing total return near 189% and an annualized rate near 13%.

The high case, assuming roughly 14% revenue CAGR and margins approaching 17%, points to around $326 per share by 2034, an IRR near 21%.

The layoff is directly margin-accretive across all three scenarios: a leaner Israel-based workforce directly addresses the $64 million FX cost headwind management already quantified, pulling forward the margin recovery that underpins the model’s mid and high cases.

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Is Wix stock a buy right now?

Based on TIKR’s base case model, Wix stock offers around 141% total return potential to approximately $151 by December 2030, an annualized rate near 21%.

With 13 analysts carrying buy or outperform ratings and a mean target of around $86, consensus sees meaningful upside even before the layoff’s margin impact is fully priced in.

The key variable to watch is FCF margin recovery in the second half of 2026 as Base44 AI compute costs normalize.

What is the price target for WIX stock?

The street mean target stands at approximately $86, implying around 37% upside from the current price, with the high target at $150.

TIKR’s own base case model sits at approximately $151 by December 2030.

The wide spread between mean and high targets reflects genuine disagreement about whether the Base44 investment cycle will expand or compress medium-term margins.

Should You Invest in Wix.com Ltd.?

The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.

Pull up Wix.com Ltd. stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.

You can build a free watchlist to track Wix.com Ltd. alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.

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