WIX

LONG

WIX COM LTD

Funds

Score

4.50

vs SPY

-54.1%

Stock return (since Q-end)

-37.8%

SPY return (since Q-end)

+16.3%

Current price

$56.06

News Summary

Negative

Wix reported a significant earnings miss in Q1 2026 (EPS of $0.68 vs. consensus of $1.25) driven by aggressive S&M spending on BASE44 and Super Bowl advertising, resulting in a $57.5M net loss versus prior-year profit. The company is undergoing its deepest restructuring with ~20% workforce reductions amid FX headwinds (shekel strengthening) and AI reorientation, while stock has fallen 50% YTD to $2B valuation despite reaffirmed mid-teens growth guidance and strong BASE44 monetization ($150M ARR).

Red flags

•EPS missed consensus by 46% ($0.68 vs. $1.25 expected)
•Net loss of $57.5M vs. prior-year profit of $33.8M
•Free cash flow declined 47% YoY ($75M vs. $142.4M)
•Stock down 50% YTD; fallen 42% since $92/share buyback announcement
•Multiple analyst downgrades: JPMorgan to Underweight, UBS to Neutral; concerns about core business deceleration
•~1,000 employees (20%) laid off; significant organizational restructuring underway
•FX headwind of $64M to expense base; shekel gained 7% in first 5 months of 2026
•Partners revenue growth slower than expected
•Valuation collapsed from $20B peak (2021) to $2B; approaching net debt position (~$1B)

Funds Buying (3)

Fund	Manager	Shares Held	∆ Shares	Position Value	QoQ	Status
Durable Capital Partners	Henry Ellenbogen	2.0M	+2.0M	$183.9B	—	NEW
ValueAct Holdings	Mason Morfit	1.1M	+1.1M	$94.1B	—	NEW
Soros Fund Management	Soros Family Office	250K	+250K	$22.5B	—	NEW

Shares Held and Position Value reflect total quarter-end holdings. ∆ Shares is the change from the prior quarter.