Wix.com (NASDAQ:WIX) Trading 9.9% Higher - Still a Buy?

Key Points

• Wix.com shares jumped 9.9% on Friday, trading as high as $57.82 after closing at $52.65 the prior session, though volume was below average.
• The company is facing significant restructuring, including laying off about 20% of its workforce to become leaner amid AI-driven productivity gains and foreign-exchange pressure.
• Despite the stock move, Wix has recent analyst downgrades and legal/investigative overhangs; analysts still rate it a Moderate Buy overall, but several price targets were cut sharply.

Shares of Wix.com Ltd. (NASDAQ:WIX - Get Free Report) traded up 9.9% during trading on Friday . The stock traded as high as $57.82 and last traded at $57.8570. 1,478,669 shares were traded during trading, a decline of 42% from the average session volume of 2,539,369 shares. The stock had previously closed at $52.65.

More Wix.com News

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

• Positive Sentiment: Wix said the layoffs are part of a restructuring aimed at making the company leaner and more efficient, with management citing AI-driven productivity gains and foreign-exchange pressure as reasons for the move. Reuters: Israeli website creator Wix.com cuts 1000 jobs due to strong shekel, growth of AI
• Neutral Sentiment: Several outlets reported that investors are paying close attention to Wix after the company became one of the day’s most-searched stocks, signaling heightened trading interest rather than a clear fundamental update. Neutral Sentiment: Zacks article on investor searches
• Negative Sentiment: Wix confirmed it will cut about 20% of its workforce, or more than 1,000 jobs, as AI and currency challenges reshape the business; that can raise concerns about growth, execution, and near-term disruption. CNBC: Wix laying off about 20% of its workforce
• Negative Sentiment: Law firms and newswires announced multiple investigations into possible securities-law violations tied to Wix’s prior stock drop and concerns about AI-demand issues and operating-expense growth, adding legal overhang and uncertainty for shareholders. Negative Sentiment: GlobeNewswire securities fraud investigation

Wall Street Analysts Forecast Growth

Several analysts recently commented on the stock. Wells Fargo & Company downgraded shares of Wix.com from an "overweight" rating to an "equal weight" rating and cut their price objective for the company from $137.00 to $54.00 in a research report on Thursday, May 14th. Needham & Company LLC cut their price objective on shares of Wix.com from $115.00 to $80.00 and set a "buy" rating on the stock in a research report on Thursday, May 14th. Weiss Ratings raised shares of Wix.com from a "sell (d)" rating to a "sell (d+)" rating in a research report on Thursday, May 14th. Cantor Fitzgerald cut their price objective on shares of Wix.com from $110.00 to $70.00 and set an "overweight" rating on the stock in a research report on Thursday, May 14th. Finally, Citigroup downgraded shares of Wix.com from a "buy" rating to a "neutral" rating and cut their price objective for the company from $105.00 to $66.00 in a research report on Thursday, May 14th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Wix.com presently has a consensus rating of "Moderate Buy" and a consensus price target of $100.90.

Wix.com Stock Performance

The company has a 50 day moving average of $73.02 and a 200-day moving average of $85.58. The stock has a market cap of $3.35 billion, a price-to-earnings ratio of -73.62, a price-to-earnings-growth ratio of 2.22 and a beta of 1.01.

Wix.com (NASDAQ:WIX - Get Free Report) last posted its quarterly earnings results on Wednesday, May 13th. The information services provider reported $0.68 earnings per share (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%. Wix.com's revenue for the quarter was up 14.2% on a year-over-year basis. During the same period in the prior year, the business earned $1.69 EPS. On average, research analysts anticipate that Wix.com Ltd. will post 1.52 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Farther Finance Advisors LLC raised its holdings in shares of Wix.com by 122.2% in the fourth quarter. Farther Finance Advisors LLC now owns 240 shares of the information services provider's stock worth $25,000 after acquiring an additional 132 shares during the last quarter. Westside Investment Management Inc. lifted its holdings in shares of Wix.com by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 154 shares of the information services provider's stock worth $27,000 after purchasing an additional 77 shares during the last quarter. Flagship Harbor Advisors LLC purchased a new position in shares of Wix.com during the fourth quarter valued at $27,000. Geneos Wealth Management Inc. grew its holdings in shares of Wix.com by 632.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 249 shares of the information services provider's stock worth $41,000 after purchasing an additional 215 shares during the last quarter. Finally, Employees Retirement System of Texas lifted its holdings in Wix.com by 129.9% during the 4th quarter. Employees Retirement System of Texas now owns 446 shares of the information services provider's stock worth $46,000 after buying an additional 252 shares in the last quarter. 81.52% of the stock is currently owned by hedge funds and other institutional investors.

Wix.com Company Profile

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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