Wix.com announced partnerships with OpenAI and Microsoft in June to integrate AI-powered tools into its platform. OpenAI's agentics feature allows users to turn business concepts into revenue platforms, while Microsoft 365 Copilot will enable chat-based Wix access. Despite these AI moves, Wix shares have fallen 69% over the past year, and JPMorgan recently downgraded the stock to Underweight with a $62 price target.
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Wix.com announced partnerships with OpenAI and Microsoft in June. The OpenAI deal focuses on agentics—technology that lets users turn business ideas into revenue-generating platforms. The Microsoft partnership integrates Wix into Microsoft 365 Copilot, allowing users to access Wix through chat.
Why it matters
Wix shares have fallen 69% over the past year and 51% year-to-date, and JPMorgan cut its price target to $62 from $86 in June, maintaining an Underweight rating. The AI partnerships signal the company is trying to remain relevant in a competitive market, though the stock decline suggests investors have concerns about its near-term prospects.
What to watch
JPMorgan's June 18th downgrade came as part of its evaluation of the broader internet sector. Wix is now betting that integrations with major AI platforms will help it compete and recover market confidence.
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.
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