Wix.com (NASDAQ:WIX) Shares Down 9.1% – Should You Sell?

Wix.com Ltd. (NASDAQ:WIX)’s stock price dropped 9.1% during trading on Thursday . The stock traded as low as $55.39 and last traded at $55.6250. Approximately 574,769 shares changed 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.

Trending Headlines about 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

Analysts Set New Price Targets

A number of brokerages have issued reports on WIX. Bank of America lowered their target price on Wix.com from $136.00 to $109.00 and set a “buy” rating for the company in a report on Tuesday, April 21st. Barclays dropped their price objective on shares of Wix.com from $155.00 to $100.00 and set an “overweight” rating for the company in a report on Thursday, May 14th. Cantor Fitzgerald reduced their target price on shares of Wix.com from $110.00 to $70.00 and set an “overweight” rating on the stock in a report on Thursday, May 14th. Scotiabank reaffirmed an “outperform” rating on shares of Wix.com in a research note on Tuesday, June 9th. Finally, Raymond James Financial cut shares of Wix.com from a “strong-buy” rating to an “outperform” rating and reduced their price objective for the stock from $75.00 to $70.00 in a research note on Thursday. Eleven research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $91.10.

Wix.com Price Performance

The company has a fifty day moving average price of $49.98 and a 200 day moving average price of $68.21. The stock has a market cap of $3.25 billion, a P/E ratio of -71.74 and a beta of 0.93.

Wix.com (NASDAQ:WIX) 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 the consensus estimate of $1.21 by ($0.53). The business 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 business’s revenue for the quarter was up 14.2% compared to the same quarter last year. During the same period in the previous year, the business posted $1.69 EPS. As a group, sell-side analysts expect that Wix.com Ltd. will post -0.16 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Wix.com

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Handelsbanken Fonder AB lifted its position in Wix.com by 33.1% in the 2nd quarter. Handelsbanken Fonder AB now owns 14,254 shares of the information services provider’s stock valued at $647,000 after acquiring an additional 3,544 shares in the last quarter. Arkadios Wealth Advisors bought a new stake in Wix.com during the 1st quarter worth approximately $249,000. California State Teachers Retirement System raised its stake in shares of Wix.com by 6.0% in the first quarter. California State Teachers Retirement System now owns 59,243 shares of the information services provider’s stock worth $5,336,000 after purchasing an additional 3,343 shares during the last quarter. Empowered Funds LLC bought a new position in shares of Wix.com in the first quarter valued at approximately $2,381,000. Finally, Quantinno Capital Management LP lifted its holdings in shares of Wix.com by 155.6% in the first quarter. Quantinno Capital Management LP now owns 122,722 shares of the information services provider’s stock valued at $11,054,000 after purchasing an additional 74,716 shares in the last quarter. 81.52% of the stock is owned by 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.