Wix.com (NASDAQ:WIX) Shares Gap Up on Better-Than-Expected Earnings

Wix.com Ltd. (NASDAQ:WIX) shares gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $83.78, but opened at $89.14. Wix.com shares last traded at $90.1290, with a volume of 1,620,154 shares trading hands.

The information services provider reported $1.81 earnings per share for the quarter, topping the consensus estimate of $1.36 by $0.45. Wix.com had a net margin of 7.20% and a negative return on equity of 102.59%. The firm had revenue of $524.27 million for the quarter, compared to analysts’ expectations of $527.69 million. During the same period in the prior year, the firm earned $2.10 earnings per share. The company’s quarterly revenue was up 13.9% compared to the same quarter last year.

Wix.com declared that its Board of Directors has initiated a stock buyback plan on Wednesday, January 28th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the information services provider to buy up to 40.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

Key Wix.com News

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

• Positive Sentiment: Wix launched a modified Dutch‑auction tender offer to repurchase up to $1.75 billion of shares at $80–$92 per share — a major capital‑return move that reduces float and supports the stock. Wix Announces Commencement of Modified Dutch Auction Tender Offer to Purchase Up to $1,750,000,000 in Aggregate Purchase Price of its Ordinary Shares
• Positive Sentiment: Q4 results: EPS beat ($1.81 vs. ~$1.36 est.), bookings and revenue grew ~14–15% YoY, Base44 passed $100M ARR, management gave mid‑teens revenue guidance for 2026 and expects low‑to‑mid‑20% FCF margin — all supportive of durable growth and cash generation. The company also reiterated plans to accelerate its $2B repurchase program. Wix Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Market reaction coverage highlights the rally tied to the buyback/tender offer and earnings beat. Traders view the combination of capital returns, a $250M private placement led by a long‑term investor, and AI product momentum as a catalyst for multiple expansion. Wix Stock Surges On $1.75 Billion Share Tender Offer
• Positive Sentiment: Analysts/commentary lifting confidence in Wix’s AI strategy and execution — headlines frame AI investments as tailwinds rather than risk, reinforcing the growth narrative. Wix.com: No AI Apocalypse In Sight, Only Tailwinds (Upgrade)
• Neutral Sentiment: Needham trimmed its price target from $140 to $115 but kept a Buy rating — reduces upside math but maintains analyst conviction. Benzinga
• Negative Sentiment: Revenue narrowly missed estimates (~$524.3M vs. ~$527.7M) and the company still shows a negative ROE; these metrics temper the beat and leave room for scrutiny on longer‑term profitability unless growth and FCF continue to improve. Wix reports better-than-expected earnings but slight revenue miss for Q4

Analysts Set New Price Targets

A number of brokerages have commented on WIX. Raymond James Financial reissued a “strong-buy” rating and set a $100.00 price objective on shares of Wix.com in a report on Wednesday. UBS Group reiterated an “overweight” rating on shares of Wix.com in a research report on Thursday, December 11th. Needham & Company LLC lowered their price target on shares of Wix.com from $140.00 to $115.00 and set a “buy” rating for the company in a report on Thursday. Wall Street Zen raised Wix.com from a “hold” rating to a “buy” rating in a report on Saturday, February 28th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Wix.com in a research note on Wednesday, January 21st. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Wix.com presently has a consensus rating of “Moderate Buy” and a consensus price target of $151.45.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. 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 worth $25,000 after buying an additional 132 shares during the period. Westside Investment Management Inc. raised its holdings in shares of Wix.com by 100.0% during the third quarter. Westside Investment Management Inc. now owns 154 shares of the information services provider’s stock worth $27,000 after acquiring an additional 77 shares during the period. Flagship Harbor Advisors LLC bought a new stake in Wix.com in the 4th quarter valued at $27,000. Geneos Wealth Management Inc. boosted its stake in 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 period. Finally, Employees Retirement System of Texas increased 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 purchasing an additional 252 shares in the last quarter. 81.52% of the stock is owned by institutional investors and hedge funds.

Wix.com Trading Up 8.2%

The stock has a market cap of $5.09 billion, a price-to-earnings ratio of 38.79, a P/E/G ratio of 2.31 and a beta of 1.39. The company has a 50 day simple moving average of $83.51 and a 200-day simple moving average of $116.16.

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.