Wix sinks 23% as Q1 loss, margin pressure overshadow steady revenue growth

Wix.com Ltd. (WIX) is down 23.2% today. Here is some analysis on what might have caused this price movement.

Analysis: The drop appears tied to investor concern over profitability and near-term execution rather than top-line growth, after Wix posted a GAAP loss and weaker margins while describing a softer start in parts of its business. Even with reiterated mid-teens growth expectations for 2026, the combination of margin pressure, bookings coming in slightly light versus expectations, and incremental headwinds (FX and operational disruptions) likely weighed on sentiment.

Details:

Wix reported Q1 2026 revenue of $541.2 million (+14% y/y) and bookings of $585.0 million (+15% y/y), while reiterating its full-year expectation for mid-teens percentage growth in both metrics.

Profitability moved the wrong way: GAAP net loss was $57.5 million (vs. GAAP net income in the prior-year quarter), and non-GAAP net income was $42.5 million with non-GAAP gross margin of 66%.

The quarter’s adjusted gross margin was lower year over year, and total bookings were slightly below consensus expectations, which can pressure the stock when valuation is sensitive to forward margins and growth.

Management flagged headwinds including a softer start in the Partners business, FX pressure from a stronger Israeli shekel, and productivity impacts tied to the war in the Middle East.

Sources:

SEC, Wix.com (Investor Relations/press release), Investing.com

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$WIX Hedge Fund Activity

We have seen 166 institutional investors add shares of $WIX stock to their portfolio, and 278 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

HSBC HOLDINGS PLC added 3,500,047 shares (+11894.0%) to their portfolio in Q1 2026, for an estimated $315,249,233
ATREIDES MANAGEMENT, LP added 1,247,457 shares (+inf%) to their portfolio in Q4 2025, for an estimated $129,598,307
PRINCIPAL FINANCIAL GROUP INC removed 1,109,944 shares (-79.4%) from their portfolio in Q1 2026, for an estimated $99,972,656
DURABLE CAPITAL PARTNERS LP removed 1,031,844 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $107,198,273
SOMA EQUITY PARTNERS LP removed 842,614 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $87,539,168
ACADIAN ASSET MANAGEMENT LLC removed 775,212 shares (-50.1%) from their portfolio in Q1 2026, for an estimated $69,823,344
FOXHAVEN ASSET MANAGEMENT, LP removed 689,041 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $71,584,469

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$WIX Analyst Ratings

Wall Street analysts have issued reports on $WIX in the last several months. We have seen 10 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

Morgan Stanley issued a "Overweight" rating on 01/15/2026
Wells Fargo issued a "Overweight" rating on 12/19/2025
Needham issued a "Buy" rating on 11/20/2025
Scotiabank issued a "Sector Outperform" rating on 11/20/2025
Cantor Fitzgerald issued a "Overweight" rating on 11/20/2025
Benchmark issued a "Buy" rating on 11/20/2025
RBC Capital issued a "Outperform" rating on 11/20/2025

To track analyst ratings and price targets for $WIX, check out Quiver Quantitative's $WIX forecast page.

$WIX Price Targets

Multiple analysts have issued price targets for $WIX recently. We have seen 20 analysts offer price targets for $WIX in the last 6 months, with a median target of $125.0.

Here are some recent targets:

Alexei Gogolev from JP Morgan set a target price of $86.0 on 05/13/2026
Ken Wong from Oppenheimer set a target price of $115.0 on 04/27/2026
Michael McGovern from B of A Securities set a target price of $109.0 on 04/21/2026
Trevor Young from Barclays set a target price of $155.0 on 04/09/2026
Chris Zhang from UBS set a target price of $96.0 on 04/02/2026
James Callahan from Piper Sandler set a target price of $98.0 on 03/12/2026
Vikram Kesavabhotla from Baird set a target price of $90.0 on 03/09/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.