Wix.Com Ltd (WIX) posted a solid earnings beat on Wednesday, but Wall Street's response was a bit puzzling. The company crushed expectations, yet analysts started trimming their price targets anyway.
Here's what actually happened: Wix reported third-quarter earnings of $1.68 per share, comfortably ahead of the $1.47 consensus estimate. Revenue came in at $505.19 million, also beating expectations of $502.68 million. By most measures, this was a win.
The company even bumped up its full-year 2025 sales guidance, raising the range from $1.975-$2.000 billion to $1.990-$2.000 billion. So everything's looking good, right?
Well, sort of. CEO and Co-founder Avishai Abrahami was certainly optimistic, talking up the company's new Base44 platform. "Our goal has always been to give people the power to access advanced technology without the barriers of complexity," Abrahami said. "With Base44, we're extending this mission by bringing the next generation of AI and natural-language development to applications. This is the next phase in the evolution of our commitment to democratizing technology, and I'm excited for what's ahead."
Shares rose 1.2% to $102.90 in pre-market trading following the results. But then came the analyst revisions, and they weren't exactly bullish.
The Analyst Verdict
Three analysts adjusted their outlooks on Wix after digesting the earnings report, and all of them lowered their price targets despite maintaining positive ratings:
- Needham analyst Bernie McTernan kept a Buy rating but slashed the price target from $200 to $140.
- Citizens analyst Andrew Boone maintained a Market Outperform rating while cutting the target from $210 to $185.
- Benchmark analyst Mark Zgutowicz stuck with a Buy rating but dropped the price target from $230 to $185.
The pattern is clear: analysts still like the stock, but they're recalibrating expectations. Sometimes a beat is just a beat, and the market looks forward to what comes next.
