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

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

Key Headlines Impacting Wix.com

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

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on WIX. Raymond James Financial restated a “strong-buy” rating and issued a $100.00 price objective on shares of Wix.com in a report on Wednesday, March 4th. Citigroup downgraded Wix.com from a “buy” rating to a “neutral” rating and decreased their price objective for the company from $105.00 to $66.00 in a report on Thursday, May 14th. Barclays decreased their price objective on Wix.com from $155.00 to $100.00 and set an “overweight” rating for the company in a report on Thursday, May 14th. Zacks Research upgraded Wix.com from a “strong sell” rating to a “hold” rating in a report on Friday, January 30th. Finally, UBS Group restated a “neutral” rating and issued a $68.00 price objective on shares of Wix.com in a report on Thursday, May 14th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Wix.com has a consensus rating of “Moderate Buy” and an average target price of $100.90.

Wix.com Price Performance

The stock has a market capitalization of $3.35 billion, a P/E ratio of -73.62, a P/E/G ratio of 2.22 and a beta of 1.01. The firm’s 50 day moving average price is $73.02 and its 200 day moving average price is $85.58.

Wix.com (NASDAQ:WIX) last issued its quarterly earnings data on Wednesday, May 13th. The information services provider reported $0.68 EPS for the quarter, missing the consensus estimate of $1.21 by ($0.53). Wix.com had a negative net margin of 1.97% and a negative return on equity of 33.28%. The firm had revenue of $541.17 million for the quarter, compared to the consensus estimate of $544.04 million. During the same period last year, the company posted $1.69 earnings per share. The business’s revenue was up 14.2% on a year-over-year basis. On average, equities research analysts forecast that Wix.com Ltd. will post 1.52 earnings per share for the current year.

Hedge Funds Weigh In On Wix.com

A number of institutional investors have recently bought and sold shares of the stock. Ameriprise Financial Inc. raised its stake in Wix.com by 128.3% in the third quarter. Ameriprise Financial Inc. now owns 4,637,795 shares of the information services provider’s stock worth $823,813,000 after buying an additional 2,606,204 shares in the last quarter. Senvest Management LLC increased its stake in shares of Wix.com by 24.8% during the first quarter. Senvest Management LLC now owns 3,754,680 shares of the information services provider’s stock valued at $338,184,000 after purchasing an additional 746,200 shares in the last quarter. Hsbc Holdings PLC increased its stake in shares of 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 valued at $318,676,000 after purchasing an additional 3,500,047 shares in the last quarter. Wellington Management Group LLP increased its stake in shares of 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 valued at $602,270,000 after purchasing an additional 1,609,989 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its stake in shares of Wix.com by 57.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,585,962 shares of the information services provider’s stock valued at $142,848,000 after purchasing an additional 578,729 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.