WIX - Wix.com Ltd.

Down 6.6% after lowering bookings by $50M and revenue by $25M. Real concern is future bookings — will they lower again? AI website builders (ChatGPT, Anthropic, OpenAI Codex) are competitive threats. Host says if there's a warning sign to stay away, this is it.

Could be interested. $2.3B market cap, $2B revenue, $550M free cash flow, expanding margins. Potential target for private acquisition. Base 44 could expand business but also cannibalistic. Being sold off on AI replacement fears.

Host notes Wix has risen from $51 to $61 and is building a strong AI harness product (Base 44) that enables agent creation. He calls it 'a name people won't forget about on this rise up' and finds it very interesting.

Up 10.5% in the rally. Host says it's 'interesting to look at' and believes if it goes up, it could truly get rerated from $50 to $90. However, he acknowledges there are reasons to be scared about Wix.

Wix has $2B annualized recurring revenue, double-digit growth, 21% FCF margins, and trades at only 9.5x forward PE and 1x price-to-sales. The acquisition of Base44 ($150M ARR, fast-growing AI website builder) adds a high-growth AI angle. The host suggests it could be acquisition territory for a company like Shopify. New users from Base44 have higher monetization than legacy Wix users.

Host is researching Wix but has not yet purchased. Notes Base44 is the fastest-growing AI company by web traffic with $150M ARR, Wix trades at just 1x price-to-sales, announced $2B buyback, and has 105% net dollar retention. Sees it as 'insanely cheap' but acknowledges AI disruption risk from tools like Claude.

Steve argues Wix is misunderstood by the market, trading at only 1x price-to-sales despite 30% free cash flow margins and aggressive buybacks (repurchased ~40% of shares). Base44, their AI tool, is growing ARR to $150M. Tanner is skeptical, believing Wix could be disrupted by AI coding tools.

Trading at ~1x price-to-sales which Tanner calls 'ridiculous' for a company still growing double digits. Has a native AI tool (Base44) growing faster than competitors like Lovable. Recent layoffs of 20% workforce could drive short-term stock appreciation. Massive buyback program.

Premium subscribers have plateaued since 2023 and are now declining (6.3% → 6.2% → 6.1%). The business model is crumbling as LLMs like Codex allow users to build websites for free. The company recently reported earnings with a 20% stock drop, is unprofitable again, has zero visibility, rising costs from Base44 acquisition, and high stock-based compensation diluting shareholders. The host explicitly told coaching clients to 'avoid this at all cost.'

Dorsey completely sold out after it was his biggest position in late 2024. Company being crushed by AI — drag-and-drop website creation is dying. Earnings very bad, stock down 20%, went from profitable to unprofitable. Premium subscriptions declining. Core business dying, management acknowledges it. Host uses this as a cautionary tale.