Wix.com (WIX) stock declined by about 27% in Wednesday trading after reporting first‑quarter results that fell short of expectations. The company is still adding more users and growing its products, but Wall Street focused on two problems: it missed revenue and EBIT goals, and there are signs that Wix’s heavy spending cycle is not ending soon. The sharp decline pushed the stock to a new 52-week low of $51.60.
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Earnings Miss and Rising Costs Trigger Sell-Off
Wix reported Q1 adjusted earnings per share (EPS) of $0.68, missing the consensus estimate of $1.22. This is also a sharp drop from the EPS of $1.55 reported in the same quarter last year.
Revenue grew 14% year-over-year to $541.2 million but still fell short of the $544.04 million expected by Wall Street analysts.
Further, Wix’s adjusted operating margin fell significantly to 5% from 21% in the prior-year quarter. Adjusted gross margins also slid 300 basis points to 66%.
It is also worth noting that Wix’s marketing costs rose 50% from last year’s quarter. The company spent about $90 million on marketing to support its main platform and its new Base44 app‑building tool. Importantly, management signaled that spending will remain elevated as Wix continues investing in AI tools, marketing, and platform expansion.
Weak Results Lead to PT Cuts
JPMorgan analyst Alexei Gogolev lowered his price target on Wix to $86 from $91 and kept a Sell rating. He said Wix’s Q1 miss on revenue and EBIT shows that the company’s heavy spending phase is not close to ending. He noted that rising costs and slower‑than‑hoped profit gains are hurting margins, making it harder for Wix to reach its long‑term targets.
Bank of America’s Mike McGovern took a more optimistic stance, even though he lowered his estimates. The analyst cut its price target to $95 from $109 but kept a Buy rating. He called the quarter “mixed” and updated his numbers to show slightly higher sales and marketing costs and lower free cash flow due to acquisition payments.
Even with these short‑term pressures, the analyst still sees long-term upside as Wix keeps growing its AI tools, e-commerce features, and enterprise products.
Is Wix Stock a Strong Buy?
Turning to Wall Street, WIX stock has a Moderate Buy consensus rating based on 14 Buys, four Holds, and one Sell assigned in the last three months. At $119.53, the average Wix stock price target implies a 111.1% upside potential.
