A Fresh Look at Wix.com (WIX) Valuation Following the PayPal Partnership and AI Commerce Expansion

Wix.com (NasdaqGS:WIX) just revealed a significant partnership with PayPal that brings AI-powered product discovery and integrated payments to its merchants. This move provides Wix users with access to new AI shopping channels and streamlined commerce tools.

See our latest analysis for Wix.com.

Wix.com has been pushing out new features and partnerships at a steady pace, including the rollout of full Royal Mail support for UK merchants and the upcoming release of its quarterly earnings. Despite this innovation streak, the share price has slid considerably, with a year-to-date share price return of -37.2% and a total shareholder return of -19.1% over the past year. Anyone who has held on since 2022 is still sitting on a strong three-year total return. Sentiment seems cautious for now, but recent moves could spark renewed interest if execution stays strong.

If these shifts in the e-commerce landscape have you curious, it’s a great time to see which other tech-driven companies are on the rise. See the full list for free.

With the stock trading at a substantial discount to most analyst price targets and recent growth initiatives ramping up, it is worth asking whether Wix shares are undervalued or if the current price already reflects the company’s future potential.

Most Popular Narrative: 34.1% Undervalued

Wix.com’s fair value, according to the most followed narrative, stands far above the last close price of $135.89, catching the eye of investors looking for value. With so much upside calculated into the consensus, this narrative gives a strong perspective on where Wix’s future could head.

AI-driven features and onboarding are boosting user growth, conversion rates, and monetization, supporting sustainable revenue and margin expansion. Diversification into new digital markets and ongoing global brand strength are broadening revenue streams and underpinning long-term business scalability.

Read the complete narrative.

Curious how ambitious growth, bolder profit margins, and a high bar for future earnings all tie together to drive Wix’s potential? The narrative hinges on aggressive expansion and evolving monetization. See what projections are setting this fair value apart.

Result: Fair Value of $206.09 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent AI-driven competition and stricter regulations could quickly challenge Wix.com’s growth outlook and call optimistic fair value targets into question.

Find out about the key risks to this Wix.com narrative.

Build Your Own Wix.com Narrative

If you have your own take or want to dig into the numbers yourself, you can build your personalized narrative in just a few minutes. Do it your way

A great starting point for your Wix.com research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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