Why Shares of Wix.com Stock Zoomed 28% Higher Last Month
Key Points
Wix released its earnings in early March.
The company announced an aggressive share repurchase program at a higher price than where it started the month.
The stock has fallen to start April and may be cheap again.
Shares of Wix.com (NASDAQ: WIX) were up 27.8% in March, according to data from S&P Global Market Intelligence. The website-building platform released earnings and updated investors on an aggressive share repurchase program to combat its falling share price. Wall Street is worried about potential disruption from artificial intelligence (AI), which is creating uncertainty for Wix stock but also an opportunity to expand its addressable market.
Here's why Wix stock popped in March, and whether it is a buy right now.
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Potential disruption, accelerated buyback
As a website-building platform, Wix has faced a narrative in the last year or so that AI tools are coming for its customer base, which has driven the stock down over 50%.
In its fourth-quarter results released in early March, it proved that this disruption has not arrived and that management is investing aggresively to win the AI race. Q4 revenue grew 14% year-over-year to $524 million, driven by a consistent core business and rapid growth from its Base44 vibe-coding application builder, which it acquired in 2025 and has grown from zero to $50 million in annual recurring revenue (ARR) in less than a year.
Along with solid cash flow, Wix shares jumped from about $70 to $90, accounting for most of the month's gain. At the same time, management is utilizing its balance sheet to aggresively repurchase stock and lower shares outstanding through a Dutch Tender Offer, which is a fancy way of saying buying back a large bulk of shares from investors at a predetermined price.
The results of the tender offer came in April, with Wix planning to repurchase 31.6% of its outstanding shares at $92 per share.
Image source: Getty Images.
Should you buy Wix stock?
Even though Wix is making many of the right moves -- including launching its own AI website-building tool, Wix Harmony -- the stock has fallen since the tender offer announcement and is currently at $82. This is below the price management thought was a good price to repurchase stock from existing shareholders, suggesting it could be a good price to buy.
Wix had a market cap of $4.36 billion before considering this tender offer. If we eliminate almost a third of its shares outstanding, its market cap will be around $3 billion for a business that generated $600 million in free cash flow and is growing in the double-digits.
If you think the AI risk is overblown, now could be a good time to scoop up some shares of Wix for your portfolio.
Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Wix.com. The Motley Fool has a disclosure policy.