Wix.com (NASDAQ:WIX) Shares Gap Up Following Better-Than-Expected Earnings

Wix.com Ltd. (NASDAQ:WIX)’s share price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $83.78, but opened at $89.14. Wix.com shares last traded at $90.1290, with a volume of 1,620,154 shares traded.

The information services provider reported $1.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.45. The company had revenue of $524.27 million during the quarter, compared to the consensus estimate of $527.69 million. Wix.com had a negative return on equity of 102.59% and a net margin of 7.20%.The firm’s revenue was up 13.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.10 EPS.

Wix.com declared that its board has approved a share buyback plan on Wednesday, January 28th that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits the information services provider to reacquire up to 40.5% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its stock is undervalued.

Key Wix.com News

Here are the key news stories impacting Wix.com this week:

• Positive Sentiment: Wix launched a modified Dutch‑auction tender offer to repurchase up to $1.75 billion of shares at $80–$92 per share — a major capital‑return move that reduces float and supports the stock. Wix Announces Commencement of Modified Dutch Auction Tender Offer to Purchase Up to $1,750,000,000 in Aggregate Purchase Price of its Ordinary Shares
• Positive Sentiment: Q4 results: EPS beat ($1.81 vs. ~$1.36 est.), bookings and revenue grew ~14–15% YoY, Base44 passed $100M ARR, management gave mid‑teens revenue guidance for 2026 and expects low‑to‑mid‑20% FCF margin — all supportive of durable growth and cash generation. The company also reiterated plans to accelerate its $2B repurchase program. Wix Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Market reaction coverage highlights the rally tied to the buyback/tender offer and earnings beat. Traders view the combination of capital returns, a $250M private placement led by a long‑term investor, and AI product momentum as a catalyst for multiple expansion. Wix Stock Surges On $1.75 Billion Share Tender Offer
• Positive Sentiment: Analysts/commentary lifting confidence in Wix’s AI strategy and execution — headlines frame AI investments as tailwinds rather than risk, reinforcing the growth narrative. Wix.com: No AI Apocalypse In Sight, Only Tailwinds (Upgrade)
• Neutral Sentiment: Needham trimmed its price target from $140 to $115 but kept a Buy rating — reduces upside math but maintains analyst conviction. Benzinga
• Negative Sentiment: Revenue narrowly missed estimates (~$524.3M vs. ~$527.7M) and the company still shows a negative ROE; these metrics temper the beat and leave room for scrutiny on longer‑term profitability unless growth and FCF continue to improve. Wix reports better-than-expected earnings but slight revenue miss for Q4

Analyst Ratings Changes

Several brokerages recently commented on WIX. Royal Bank Of Canada dropped their target price on shares of Wix.com from $155.00 to $112.00 and set an “outperform” rating on the stock in a report on Thursday. B. Riley Financial reiterated a “buy” rating and issued a $200.00 price objective (down from $230.00) on shares of Wix.com in a research note on Thursday, November 20th. Benchmark cut their price objective on Wix.com from $185.00 to $140.00 and set a “buy” rating for the company in a research report on Monday. Wall Street Zen raised Wix.com from a “hold” rating to a “buy” rating in a report on Saturday, February 28th. Finally, Citizens Jmp cut their price target on Wix.com from $185.00 to $125.00 and set a “market outperform” rating for the company in a report on Thursday, January 22nd. Two research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $151.45.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in WIX. Avory & Company LLC acquired a new stake in Wix.com during the fourth quarter valued at approximately $359,000. Corient Private Wealth LLC boosted its stake in Wix.com by 43.3% in the 4th quarter. Corient Private Wealth LLC now owns 6,541 shares of the information services provider’s stock valued at $680,000 after buying an additional 1,978 shares in the last quarter. Alberta Investment Management Corp bought a new stake in Wix.com in the fourth quarter valued at $1,039,000. Mackenzie Financial Corp raised its stake in Wix.com by 61.2% during the fourth quarter. Mackenzie Financial Corp now owns 16,773 shares of the information services provider’s stock worth $1,731,000 after acquiring an additional 6,366 shares in the last quarter. Finally, Sphera Management Technology Funds Ltd lifted its holdings in shares of Wix.com by 92.3% during the fourth quarter. Sphera Management Technology Funds Ltd now owns 25,000 shares of the information services provider’s stock valued at $2,597,000 after acquiring an additional 12,000 shares during the period. Institutional investors and hedge funds own 81.52% of the company’s stock.

Wix.com Stock Performance

The company’s 50 day moving average price is $83.51 and its 200 day moving average price is $116.16. The company has a market cap of $5.09 billion, a price-to-earnings ratio of 38.79, a P/E/G ratio of 2.31 and a beta of 1.39.

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.