WIX - Wix.com Ltd.

Favorite software name.

Host sold position to buy CoreWeave but acknowledges strong fundamentals: 45% FCF margin, Base44 growth, trading under 1x price/sales.

14% revenue growth, $2B ARR, market cap ~$1.94B (less than cash), forward P/E of 7.5x, free cash flow margin 21%, Rule of 40 at 43%. Base44 acquisition adds agentic website building with fast growth.

Host notes Wix is very cheap (forward PE 7.6x, <1x price-to-sales, 40%+ FCF margins) but the guidance cut could be a thesis breaker. He owns zero shares and is watching to see if the demise is already priced in.

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.