Will WIX's Efforts to Expand AI Product Line-Up Boost its Stock?

Wix.com Ltd. WIX has launched its latest artificial intelligence Theme Assistant that provides users with personalized recommendations and real-time advice, allowing them to easily customize their website's theme. This tool is part of a broader suite of innovations from Wix aimed at supporting users throughout every phase of their online journey, from initial ideas to final execution.

As website designing becomes more complicated day by day, users frequently encounter difficulties aligning their choices with their vision. The AI Theme Assistant addresses this by offering conversational guidance throughout the design process, assisting with color palettes, fonts and themes, and even extracting colors from logos, added WIX.

AI Theme Assistant is integrated directly into the Wix Editor and it provides real-time suggestions and directs users to relevant areas in the Wix dashboard. By recommending features and advising on theme elements, the assistant simplifies design decisions, giving users control while enhancing their site's aesthetic.

Wix highlighted that integrating AI into web design adds significant value for its users. The theme assistant helps users achieve a cohesive and unified look for their websites, ensuring a consistent appearance throughout.

WIX to Gain From Product Line-Up Expansion

Wix's performance is being cushioned by higher adoption of the product portfolio, especially various AI products. WIX is also embedding AI assistants across its platform and has released 17 AI business assistants so far.

It continues to add new products to gain on the AI boom. In July 2024, Wix unveiled a new suite of AI-powered tools aimed at streamlining content creation. These tools are designed to suggest relevant blog topics, generate content and create images tailored to the target audience. This new feature allows users to quickly transform ideas into almost-ready articles, cutting down on the time and effort needed to produce engaging content.

In June 2024, the company launched advanced AI creation capabilities for its mobile app builder. The initiative is set to empower users to effortlessly craft professional and fully customizable applications. In the same month, the company also extended the availability of its AI Website Builder in different languages. Apart from English, AI Website Builder is now available to global users in French, German, Portuguese, Spanish, Italian, Japanese, Turkish and Korean languages. The initiative aids users in building websites in their preferred language.

Additionally, it launched the AI Portfolio Creator, a groundbreaking tool that leverages the power of AI to aid users in crafting and showcasing an online professional portfolio in May 2024. The AI Portfolio Creator effectively streamlines the portfolio creation experience by allowing users to smoothly upload and organize large-scale image collections with just a few clicks.

WIX is focusing on generative AI as it represents a significant business growth driver. In the second quarter of 2024, bookings revenues came at $458.4 million. This 15% year-over-year improvement was driven by solid uptake of WIX Studio, AI product suite and expanding commerce platform in this quarter. The expansion of the AI product portfolio is expected to drive the top line for WIX and further boost the stock.

WIX's Zacks Rank & Stock Price Performance

WIX currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 64.1% in the past year compared with the sub-industry's growth of 20.6%.

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the broader technology space are Unisys Corporation UIS, ANSYS, Inc. ANSS and Adobe Inc. UIS presently sports a Zacks Rank #1 (Strong Buy), whereas ANSS & ADBE carry a Zacks Rank #2 (Buy).

Unisys Corporation delivered an earnings surprise of 87.7%, on average, in the trailing four quarters. In the last reported quarter, UIS pulled off an earnings surprise of 143.2%. It has a long-term earnings growth expectation of 15%.

ANSYS delivered an earnings surprise of 4.8%, on average, in three of the trailing four quarters. In the last reported quarter, ANSS pulled off an earnings surprise of 28.9%. It has a long-term earnings growth expectation of 6.4%.

Adobe delivered an earnings surprise of 2.7%, on average, in the trailing four quarters. In the last reported quarter, ADBE pulled off an earnings surprise of 2.1%. It has a long-term earnings growth expectation of 13%.

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