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

Shares of Wix.com Ltd. (NASDAQ:WIX) dropped 9.1% on Thursday . The stock traded as low as $55.39 and last traded at $55.6250. 574,769 shares changed hands during mid-day trading, a decline of 74% from the average session 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:

• Negative Sentiment: Multiple law firms publicized a securities class action against Wix. The lawsuits cover investors who purchased Wix securities between February 19, 2025, and May 12, 2026. The complaints reportedly focus on whether Wix adequately disclosed weaknesses in its AI-driven “vibe coding” transition, the capabilities of its Wix Harmony platform, competition from other AI development tools and the potential impact on its financial outlook. The allegations have not been proven in court. Wix.com Faces Securities Class Action Amid Scrutiny Over Vibe Coding Transition
• Negative Sentiment: The litigation publicity reinforces concerns behind Wix’s mid-May selloff. Several notices reference the roughly 27% share-price drop following Wix’s first-quarter 2026 results, which included earnings below analyst expectations and revenue slightly below forecasts. Although revenue increased year over year, the earnings miss and ongoing negative profitability metrics may be weighing on investor confidence. Wix.com Class Action Notice
• Negative Sentiment: AI-related margin compression is an additional overhang. Commentary cited by financial outlets points to pressure on Wix’s margins as it invests in AI while facing uncertainty over whether professional developers and other customers will adopt its tools or shift to competing platforms. This raises questions about future growth, pricing power and returns on investment. Margin Compression Hits Wix.com Amid AI Concerns
• Neutral Sentiment: Investors have until September 22, 2026, to seek lead-plaintiff status in the securities case, according to the latest notices. The deadline itself does not establish liability, but the unusually high volume of law-firm announcements may keep legal and governance risks prominent in the market. Rosen Wix Investor Notice

Analysts Set New Price Targets

WIX has been the subject of several recent analyst reports. Scotiabank reaffirmed an “outperform” rating on shares of Wix.com in a research note on Tuesday, June 9th. Needham & Company LLC reissued a “buy” rating and issued a $80.00 price target on shares of Wix.com in a research note on Monday, June 15th. Morgan Stanley cut Wix.com from an “overweight” rating to an “equal weight” rating and cut their price target for the stock from $112.00 to $60.00 in a report on Tuesday, July 21st. Royal Bank Of Canada reduced their price objective on shares of Wix.com from $60.00 to $45.00 and set a “sector perform” rating for the company in a research report on Tuesday, June 9th. Finally, Oppenheimer lowered their price objective on shares of Wix.com from $115.00 to $85.00 and set an “outperform” rating for the company in a research note on Thursday, May 14th. Eleven equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $91.10.

Wix.com Price Performance

The firm has a fifty day simple moving average of $50.05 and a 200-day simple moving average of $67.85. The firm has a market cap of $3.21 billion, a P/E ratio of -70.55 and a beta of 0.93.

Wix.com (NASDAQ:WIX) last released 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 quarter in the prior year, the firm earned $1.69 EPS. The company’s revenue was up 14.2% compared to the same quarter last year. On average, equities analysts predict that Wix.com Ltd. will post -0.16 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Farther Finance Advisors LLC grew its holdings in shares of Wix.com by 122.2% during the fourth quarter. Farther Finance Advisors LLC now owns 240 shares of the information services provider’s stock valued at $25,000 after buying an additional 132 shares during the last quarter. Flagship Harbor Advisors LLC acquired a new stake in shares of Wix.com in the 4th quarter worth about $27,000. Geneos Wealth Management Inc. raised 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 acquiring an additional 215 shares during the last quarter. Employees Retirement System of Texas lifted its position in Wix.com by 129.9% in 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 in the last quarter. Finally, Banque Cantonale Vaudoise boosted its stake 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 purchasing an additional 409 shares during the last quarter. Institutional investors and hedge funds own 81.52% of the company’s stock.

About Wix.com

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.