Wix partners with OpenAI, Microsoft on AI tools as stock slides 69% year-over-year

Wix has struggled significantly in the current AI era, with shares down 69% over the past year and 51% year-to-date. The company announced two major AI partnerships in June in an apparent effort to reinvigorate investor confidence and modernize its product offering. The OpenAI deal targets the emerging agentics category, which automates business processes, while the Microsoft integration provides distribution through a mainstream productivity platform. However, these announcements arrived amid a sharp stock decline and a major analyst downgrade, suggesting the market remains skeptical about Wix's ability to compete effectively in the AI-driven landscape. JPMorgan's June 18th downgrade—dropping the price target from $86 to $62 while maintaining an Underweight rating—reflects broader concerns about the internet sector and Wix's position within it, even as the company moves to align itself with leading AI providers.