Wix.com (WIX) is back in focus as investors position ahead of its March 4 earnings release, while the company rolls out new AI powered tools and integrations with Google and Intuit that aim to deepen its role in online commerce.

With the share price at US$72.56, Wix.com has seen a 2.98% 1 day share price return and a 15.54% 7 day share price return, but a 24.31% 90 day share price decline and a 61.68% 1 year total shareholder return decline suggest momentum has recently been weak despite interest around its new AI tools and integrations.

If Wix’s AI push has caught your attention, it could be a good moment to broaden your watchlist with other AI related opportunities, starting with our screener of 61 profitable AI stocks that aren't just burning cash.

With analysts expecting Wix to pair revenue growth with lower EPS, and the stock sitting at a steep discount to its US$151.20 average price target and intrinsic value estimate, investors might ask whether this weakness represents a buying opportunity or whether the market is already pricing in future growth.

Most Popular Narrative: 54.1% Undervalued

With Wix.com last closing at $72.56 against a widely followed fair value estimate of $158.20, the dominant narrative sees a large disconnect that hinges on how its AI tools and Base44 acquisition play out over time.

Accelerating adoption of AI-powered tools and onboarding funnels is driving a significant increase in new user cohorts and higher conversion to paid subscriptions, which supports expectations for revenue growth in both the near and long term.

Read the complete narrative. Read the complete narrative.

Curious what kind of revenue and earnings path could justify more than doubling today’s price? The core story leans on faster profit growth, higher margins, and a future earnings multiple more commonly associated with higher profile software names. This is all filtered through a discount rate that keeps those forecasts grounded in today’s dollars.

Result: Fair Value of $158.20 (UNDERVALUED)

However, this story could be knocked off course if higher AI and Base44 related spending pressures margins for longer, or if AI driven competition pushes down future ARPU.

Next Steps

The mixed tone of this story, with both pressure on the share price and optimism around AI, makes it worth checking the full picture for yourself. Especially with investors weighing both risks and rewards, it is worth looking closely at 3 key rewards and 2 important warning signs before you decide what it means for you.

Looking for more investment ideas?

If Wix has you thinking harder about where you put your money next, do not stop here. Broaden your watchlist now so you do not miss other stand out setups.

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• Hunt for tomorrow’s potential leaders before the crowd catches on by reviewing the screener containing 24 high quality undiscovered gems that still sit under many radars.

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.