Chit Chat Stocks Is Wix Stock Too Cheap To Ignore? (Ticker: WIX)
Apr 22, 2026
Manuel Cunha, founder of MVC Investing and SaaS analyst, breaks down why Wix plunged and whether it is mispriced. He covers capital moves like the Dutch auction buyback and private placement, Wix Harmony and Base44 growth, AI risks and customer stickiness, plus valuation and scenarios that could trigger a re-rating.
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Why Wix Fell 80 Percent
- Wix's 80% drawdown is largely a normalization from a COVID-era valuation spike, not only AI disruption.
- Manuel Cunha highlights Wix hit ~20x sales at peak and the market reverted when growth and durability didn't justify that multiple.
Premium Subscriber Drop Was Intentional
- The decline in Wix premium subscriptions began in 2023 and was an intentional strategy to 'fire' low-value users.
- Management raised prices and allowed churn to improve unit economics and achieve ~30% free cash flow margins.
Wix Bought Back Nearly Thirty Percent Of Shares
- Wix ran a Dutch auction tender and repurchased 17.6M shares at $92, retiring ~30% of shares outstanding.
- Manuel says the move signaled management's conviction, though timing left the company buying higher than today’s price.