Wix.com (NASDAQ:WIX) Stock Price Down 9.1% - Here's Why

Key Points

• Wix shares fell 9.1% to about $55.63 during Thursday trading, extending concerns following a sharp post-earnings decline in May.
• The selloff reflects worries about Wix’s AI strategy and profitability. Securities lawsuits allege the company overstated the performance and commercial potential of its AI products, while investors also cited margin compression and increased AI development costs.
• Wix’s first-quarter results missed expectations, with EPS of $0.68 versus a $1.21 consensus and revenue of $541.17 million versus $544.04 million estimates. Analysts’ average rating is “Hold”, with an average price target of $91.10.

Wix.com Ltd. (NASDAQ:WIX - Get Free Report)'s stock price fell 9.1% during trading on Thursday . The stock traded as low as $55.39 and last traded at $55.6250. Approximately 574,769 shares traded hands during mid-day trading, a decline of 74% from the average daily volume of 2,236,884 shares. The stock had previously closed at $61.22.

Key Headlines Impacting Wix.com

Here are the key news stories impacting Wix.com this week:

• Neutral Sentiment: Multiple law firms announced or promoted the same pending securities class action in the U.S. District Court for the Northern District of Illinois. The proposed class covers investors who acquired Wix securities from February 19, 2025, through May 12, 2026; lead-plaintiff deadlines cited in the releases are September 22 or 23, 2026. These announcements are primarily procedural and do not establish that the allegations are true. Kessler Topaz securities action notice
• Negative Sentiment: The lawsuits allege that Wix overstated the competitiveness and performance of its AI products, understated the costs of developing and marketing them, and overstated their potential commercial and financial benefits. Some complaints specifically cite Wix Harmony, Base44 momentum and the possibility that professional developers were using competing AI tools. Holzer AI allegations
• Negative Sentiment: The legal campaign follows Wix’s reported 27% mid-May decline after first-quarter 2026 results. Wix reported revenue of $541.17 million, slightly below estimates, while EPS of $0.68 missed the $1.21 consensus and fell from $1.69 a year earlier, despite 14.2% revenue growth. Wix class-action announcement
• Negative Sentiment: A Columbia Threadneedle fund letter also highlighted margin compression at Wix amid AI concerns, adding to worries that investment in AI products could weigh on near-term profitability. Columbia Threadneedle fund letter

Analyst Upgrades and Downgrades

WIX has been the subject of several research analyst reports. Citizens Jmp lowered shares of Wix.com from a "market outperform" rating to a "market perform" rating in a report on Tuesday, April 7th. Bank of America cut their price objective on shares of Wix.com from $136.00 to $109.00 and set a "buy" rating on the stock in a research report on Tuesday, April 21st. Royal Bank Of Canada lowered their target price on Wix.com from $60.00 to $45.00 and set a "sector perform" rating for the company in a report on Tuesday, June 9th. Morgan Stanley cut Wix.com from an "overweight" rating to an "equal weight" rating and reduced their price objective for the stock from $112.00 to $60.00 in a research report on Tuesday, July 21st. Finally, Oppenheimer decreased their price objective on Wix.com from $115.00 to $85.00 and set an "outperform" rating for the company in a report on Thursday, May 14th. Eleven research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, Wix.com presently has an average rating of "Hold" and an average price target of $91.10.

Wix.com Price Performance

The business has a 50-day simple moving average of $49.98 and a two-hundred day simple moving average of $68.21. The stock has a market cap of $3.25 billion, a price-to-earnings ratio of -71.74 and a beta of 0.93.

Wix.com (NASDAQ:WIX - Get Free Report) last announced its quarterly earnings results on Wednesday, May 13th. The information services provider reported $0.68 EPS for the quarter, missing analysts' consensus estimates of $1.21 by ($0.53). The company had revenue of $541.17 million during the quarter, compared to analyst estimates of $544.04 million. Wix.com had a negative net margin of 1.97% and a negative return on equity of 33.28%. The firm's quarterly revenue was up 14.2% on a year-over-year basis. During the same quarter last year, the company posted $1.69 EPS. As a group, equities analysts anticipate that Wix.com Ltd. will post -0.16 earnings per share for the current fiscal year.

Institutional Trading of Wix.com

A number of institutional investors and hedge funds have recently made changes to their positions in WIX. Hsbc Holdings PLC lifted its stake in Wix.com by 11,894.0% during the first quarter. Hsbc Holdings PLC now owns 3,529,474 shares of the information services provider's stock worth $318,676,000 after purchasing an additional 3,500,047 shares during the last quarter. Ameriprise Financial Inc. grew its position in Wix.com by 879.0% in the second quarter. Ameriprise Financial Inc. now owns 2,031,591 shares of the information services provider's stock valued at $321,926,000 after acquiring an additional 1,824,070 shares during the last quarter. Wellington Management Group LLP raised its stake in Wix.com by 90.4% during the third quarter. Wellington Management Group LLP now owns 3,390,589 shares of the information services provider's stock worth $602,270,000 after acquiring an additional 1,609,989 shares in the last quarter. Diamond Hill Capital Management Inc. bought a new position in shares of Wix.com in the fourth quarter worth about $150,622,000. Finally, Atreides Management LP acquired a new stake in shares of Wix.com in the 4th quarter valued at approximately $129,598,000. Institutional investors own 81.52% of the company's stock.

About Wix.com

Wix.com Ltd. operates a cloud-based platform that enables individuals and businesses to create, manage and develop professional web presences through an intuitive drag-and-drop interface. The company's software-as-a-service model provides hosting, customizable templates and a range of design tools, eliminating the need for coding expertise. Users can choose from a variety of premium plans to access custom domains, enhanced storage, and advanced performance features tailored to personal projects, small businesses and online storefronts.

Beyond its core website builder, Wix offers a suite of complementary services designed to support digital growth and marketing.

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