Wix took on $1.1B in 0% convertible notes priced near $210/share, then bought back $1.6B of stock, all with shares trading around $75. Is management seeing value the market is missing, or is WIX a value trap?
Wix (WIX) has been one of the hardest-hit names in this year’s SaaSpocalypse. The market has been pricing software companies as if the AI labs will absorb everything. The numbers tell a more complicated story. Revenue re-accelerated 15% year over year to $563 million in Q2 2026, driven by price increases and by Base44, the vibe coding app builder Wix acquired in June 2025. Base44 crossed $150 million in annualized recurring revenue in May.
In this video, Nick and Kasey break down Wix Harmony, Base44, and Base1, Wix’s proprietary LLM built to lower AI inference costs and lift gross margins. We walk through the balance sheet, the $1.6 billion net share repurchase, and an AI investment cycle that cut quarterly free cash flow from $156 million to $53 million. Then we run a reverse DCF and our normalized profit calculator, compare WIX to Shopify, Figma, and Adobe on valuation, and explain how we’re handling our own position. Our approach is a small-bets basket with a hard rule for reassessing.
If you want the reasoning behind more names like this one, Semiconductor Insider covers the process in more depth. Get access to all our research, weekly live Q&A events, and a growing set of tools to build your process. Create your free demo account now at https://www.chipstockinvestor.com
📰 Why Chip Stock Investor Is Becoming a Software Business: https://chipstockinvestor.com/why-chip-stock-investor-is-becoming-a-software-business/
Linktree for all our socials: https://linktr.ee/chipstockinvestor
If you found this video useful, please make sure to like and subscribe!
0:00 - Wix After the SaaSpocalypse: Dead or Mispriced?
2:00 - “Reports of My Death”: Why Wix Still Has Real Assets
3:00 - Wix Harmony vs. Base44: Two Paths to AI Site Building
4:00 - Base44 vs. the AI Labs: $150M ARR in Under a Year
6:00 - Base1: Why Wix Is Building Its Own LLM
7:45 - $1.1B Convertible Notes & a $1.6B Buyback
10:00 - Revenue Re-Accelerates 15%, Free Cash Flow Drops
14:00 - Valuation: Reverse DCF vs. Normalized Profitability
19:00 - WIX vs. SHOP, FIG & ADBE: Value or Value Trap?
20:45 - Our Decision: Sell, or Hold in the Small Bets Basket?
*******************************************************
Affiliate links that are sprinkled in throughout this video. If something catches your eye and you decide to buy it, we might earn a little coffee money. Thanks for helping us (Kasey) fuel our caffeine addiction!
Content in this video is for general information or entertainment only and is not specific or individual investment advice. Forecasts and information presented may not develop as predicted and there is no guarantee any strategies presented will be successful. All investing involves risk, and you could lose some or all of your principal.
CSI owns shares of Wix.
#Investing #StockMarket #WIX #Base44 #Shopify
