Wix.com (NASDAQ:WIX) Shares Gap Down – Here’s What Happened

Wix.com Ltd. (NASDAQ:WIX) gapped down before the market opened on Monday . The stock had previously closed at $52.39, but opened at $47.71. Wix.com shares last traded at $49.37, with a volume of 764,785 shares.

Wix.com News Roundup

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

• Positive Sentiment: Some commentary continues to frame Wix as oversold after the recent collapse, suggesting the stock may be pricing in a worst-case scenario and could draw value buyers if execution stabilizes.
• Neutral Sentiment: Citigroup lowered its price target on Wix to $59 from $66 and kept a neutral rating, reflecting a more cautious stance but still implying upside from current levels.
• Negative Sentiment: RBC warned that Wix faces AI headwinds in the web design market, reinforcing concerns that low-cost AI tools may pressure demand for Wix’s core website-building products.
• Negative Sentiment: Wix’s recent revenue and bookings guidance reduction, along with reports of about 1,000 layoffs and a broader restructuring, has intensified fears of slower growth and weaker near-term profitability.
• Negative Sentiment: Multiple law firms have launched or expanded securities fraud investigations into Wix following its disappointing Q1 results, adding another layer of uncertainty and potential legal overhang.

Analyst Ratings Changes

WIX has been the topic of a number of recent analyst reports. Wells Fargo & Company lowered their target price on Wix.com from $54.00 to $47.00 and set an “equal weight” rating on the stock in a research note on Tuesday. Piper Sandler began coverage on Wix.com in a research note on Thursday, March 12th. They set a “neutral” rating and a $98.00 target price on the stock. Morgan Stanley reduced their target price on shares of Wix.com from $125.00 to $112.00 and set an “overweight” rating for the company in a research report on Monday, May 18th. Cantor Fitzgerald reduced their target price on shares of Wix.com from $110.00 to $70.00 and set an “overweight” rating for the company in a research report on Thursday, May 14th. Finally, Robert W. Baird downgraded shares of Wix.com from an “outperform” rating to a “neutral” rating and reduced their target price for the company from $115.00 to $90.00 in a research report on Monday, March 9th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $98.45.

Wix.com Price Performance

The stock has a market capitalization of $2.81 billion, a P/E ratio of -61.82 and a beta of 0.91. The company has a 50 day simple moving average of $67.45 and a 200-day simple moving average of $81.57.

Wix.com (NASDAQ:WIX) last issued its earnings results on Wednesday, May 13th. The information services provider reported $0.68 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.21 by ($0.53). The firm had revenue of $541.17 million during the quarter, compared to the consensus estimate of $544.04 million. Wix.com had a negative net margin of 1.97% and a negative return on equity of 33.28%. The business’s quarterly revenue was up 14.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.69 earnings per share. As a group, equities analysts forecast that Wix.com Ltd. will post -0.27 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Wix.com

A number of institutional investors and hedge funds have recently added to or reduced their stakes in WIX. Farther Finance Advisors LLC raised its holdings in Wix.com by 122.2% during the 4th quarter. Farther Finance Advisors LLC now owns 240 shares of the information services provider’s stock valued at $25,000 after acquiring an additional 132 shares during the period. Flagship Harbor Advisors LLC bought a new stake in Wix.com during the 4th quarter valued at $27,000. Geneos Wealth Management Inc. raised its holdings in Wix.com by 632.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 249 shares of the information services provider’s stock valued at $41,000 after acquiring an additional 215 shares during the period. Employees Retirement System of Texas raised 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 valued at $46,000 after acquiring an additional 252 shares during the period. Finally, Banque Cantonale Vaudoise raised its holdings in Wix.com by 464.8% during the 4th quarter. Banque Cantonale Vaudoise now owns 497 shares of the information services provider’s stock valued at $52,000 after acquiring an additional 409 shares during the period. Institutional investors own 81.52% of the company’s stock.

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.