Why Is WIX Stock Sliding Over 3% In Premarket Trading Today?

• WIX’s adjusted profit dropped to $0.68 per share, down from $1.55, as costs surged.
• Wix is building native AI tools, which it claims will, over time, rationalize costs at a company level.
• Stocktwits sentiment for WIX flipped to ‘bullish’ from ‘bearish.’

Shares of Wix.com Ltd. fell 3.3% in early premarket trading on Wednesday after the website builder’s quarterly results came in below analysts’ expectations. Still, some retail traders believed the stock had room for a strong rebound given its recent underperformance and the company’s growing push into AI.

Revenue in the first quarter rose 14% to $541 million, below analysts’ consensus expectation of $544 million. Adjusted profit came in at $0.68 per share, down from $1.55, significantly below the target of $1.24. Cost of revenue jumped 24% to $189 million.

The company expects revenue to grow in the mid-teens in the second quarter while retaining its 2026 view of mid-teens growth.

WIX’s AI Focus

“Despite a softer start to the year in our Partners business, our conviction in our broader near-term strategy and AI-focused product roadmap remains unchanged. Importantly, key initiatives, such as Harmony and Base44, continue to perform well,” the company said in its earnings statement.

In recent months, Wix has rolled out a series of major AI-focused initiatives, including its “Harmony” AI website creation platform, expanded its Base44 AI app-building business, and announced plans to launch in-house AI models to reduce inference costs. The company announced a $2 billion stock buyback in February.

Despite those updates, the stock has been under pressure, largely because investors fear that generative AI tools from companies such as Anthropic and OpenAI, as well as emerging “vibe coding” platforms, could disrupt Wix’s traditional website-building business. 

Wix shares have declined over the last three sessions and are now down about 58% over 12 months.

Retail View On WIX

On Stocktwits, the retail sentiment for WIX flipped to ‘bullish’ from ‘bearish,’ and message volume notched up to ‘high’ from ‘neutral.’

“$WIX The company bought 30 percent of their shares. $1.6 billion. The company becomes an AI company. I'm buying more. There is no reason for the stock to be under $100,” argued a trader. 

Wix’s offerings overlap with those of GoDaddy, Shopify, and Adobe to some extent. One of Wix’s major direct competitors, Squarespace, became a private company in 2024 after its buyout by private equity firm Permira.

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