Wix.com Ltd. (NASDAQ:WIX) is a leading company that provides a popular website builder platform for users to create and manage their online presence. On June 9, 2026, analyst firm Scotiabank reiterated its "Outperform" rating for Wix. While maintaining this positive outlook on the web development stock, the firm lowered its price target to $90.00 from $110.00, when the stock was trading at $48.92.
The lowered target reflects recent company struggles, as Wix shares are touching 52-week lows. This slide began after a major first-quarter 2026 earnings miss. The company reported a non-GAAP EPS of $0.68, which was a 44% miss compared to the $1.22 consensus, causing the stock to fall 27% in a single day following the financial results.
A primary concern for investors is the surge in the company's costs. Operating expenses, which are the costs of running the business, jumped from 21% of revenue in the first quarter of 2025 to 35% in the first quarter of 2026. This increase puts pressure on the company's ability to generate profit from its sales, impacting overall profitability.
In response to these financial pressures, Wix announced the largest layoff in its history, cutting 1,000 jobs, or 20% of its staff, as highlighted by WSJ. The company also faces a securities fraud investigation from The Law Offices of Frank R. Cruz on behalf of investors, as reported by Business Wire, following its recent financial performance.
Adding to the pressure is investor uncertainty about artificial intelligence (AI). As highlighted by Benzinga, the market is unsure if AI is a threat to the core business of Wix or a future growth opportunity for the website builder. This uncertainty contributes to the stock's ongoing weakness despite the analyst rating, creating a challenging investment landscape.
