WIX: 1Q:26 EPS Review: AI Competition Bear Case Playing Out; Downgrade to EW

研报英文原文证据摘录

WIX: 1Q:26 EPS Review: AI Competition Bear Case Playing Out; Downgrade to EW

Equity Research

Rating Change — May 14, 2026

Internet

Wix.com Ltd

1Q:26 EPS Review: AI Competition Bear Case Playing Out; Equal Weight

Downgrade to EW Price Target: $54.00

Notable Changes

Our Call $ (Dec) Current Prior % Chg

While 1Q total bookings were ~in line, mix toward Base44 & business solutions suggests Rating EW OW

core Wix subscription bookings decel'd meaningfully, likely due to competition from AI Price Target $54.00 $137.00 -60.6%

solutions. Faster mix towards Base44 pressuring margins. Downgrade to EW. EBIT (MM) 2026 221.0 333.1 -33.7%

EBIT (MM) 2027 300.8 410.1 -26.7%

Core Wix bookings growth is slowing faster than we anticipated; downgrade to Equal EPS 2026 (3.17) 1.44 -

Weight. We previously believed Core WIX creative subscription bookings could maintain EPS 2027 0.71 2.64 -73.2%

HSD to LDD growth, taking advantage of an accel in end market trends even while

losing modest share vibe coders. The end market accelerated, but competitive pressures

Ticker WIX

impacting growth to a greater extent than we expected; est 1Q core CS bookings growth

decel'd to +2% y/y ex. F/X vs. 4Q +9%. As a result, D/G to EW. Upside/(Downside) to Target (2.4)%

Price (05/13/2026) $55.32

Faster-than-anticipated mix shift toward Base44 is now causing greater pressure to 52 Week Range $51.60 - 191.24

unit economics than we previously expected as well. In addition to mix pressure, we Market Cap (MM) $2,693

also believe that higher Base44 S&M spend (1Q S&M $21M ahead of WFSe, believe the Enterprise Value (MM) $3,326

majority of delta Base44) suggests ARR beat is lower quality; unclear that Base44 will be Average Daily Value (MM) $155