Base44 is booming. So why is Wix collapsing?

Key Points:

• Wix’s stock has plummeted nearly 50% since early 2026, hitting a four-year low with a market value of $2.2 billion, despite strategic moves including acquiring Base44 and a $1.6 billion share buyback intended to reassure investors.
• The company’s pivot to AI and acquisition of Base44, a vibe-coding startup, has driven rapid revenue growth for Base44 but coincided with a slowdown in Wix’s core business, raising concerns among investors.
• Base44’s success has significantly increased Wix’s costs, including milestone payments to the founder, high marketing expenses (notably a $20 million Super Bowl campaign), and rising computing costs, resulting in a first-quarter operating loss of $70 million and net loss of $57 million.
• Wix’s cash reserves have been depleted by the large buyback, and the company has taken on $1 billion in convertible debt, making it a net debt company and complicating its financial outlook amid ongoing market uncertainty.
• Despite challenges, Base44’s market position exceeds competitors like Lovable and Replit, suggesting potential long-term value, especially given Wix’s experienced management and operational discipline compared to private startups.