Shares of Wix.com (WIX 1.91%) dropped 51.6% in 2025, according to data from S&P Global Market Intelligence. The platform for website builders and small business e-commerce is growing steadily, but faces cost and disruption risk from artificial intelligence (AI). At the same time, it is investing heavily into its new "vibe coding" AI service called Base 44 for website building, which is growing at a blistering rate.
Here's why Wix.com stock declined in 2025, and whether investors should consider buying shares today.
NASDAQ: WIX
Key Data Points
Rising costs and opportunities in vibe coding websites
As a platform for building and operating websites, Wix.com has been a steady grower for the last decade-plus. Since 2011, revenue has grown by 7,740%, recently hitting close to $2 billion.
This all may be potentially disrupted by AI. Now, with modern coding tools, anyone can build a custom website by simply speaking to large language chatbots. Investors in Wix are nervous about the rise of these tools and whether they will break the competitive advantage and switching costs built into Wix's business model. It could also drive down costs for annual subscriptions for its website-building platform if this type of tool becomes ubiquitous.
To fight this trend, Wix.com is getting in on the action with its acquisition of Base 44, a vibe-coding tool that is growing rapidly. Base 44's annual recurring revenue (ARR) was projected to reach $50 million by the end of 2025, which helped Wix.com raise its annual revenue guidance to around $2 billion.
Image source: Getty Images.
Time to buy the dip?
The narrative around Wix's business is piss poor right now. However, if you examine the underlying financials, it is performing just fine.
Revenue and bookings are projected to grow in the double-digits in 2025. Free cash flow was over $500 million in the last twelve months, which shows the high underlying profitability of the website software business. Base 44 should help to accelerate growth in 2026.
After the stock's drawdown, Wix now has a market cap of $5 billion, or under 10x its trailing free cash flow. As it begins to return a lot of cash to shareholders through share repurchases, it should be able to take advantage of this cheap share price. Now looks like a good time to buy the dip on Wix.com stock.
