Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's financial health and future growth potential [4] - Momentum Score capitalizes on price trends and earnings outlook [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 top-rated stocks available, making it essential for investors to utilize Style Scores for better selection [9] Stock Analysis: Wix.com - Wix.com Ltd. is a cloud-based web development platform that provides tools for businesses to create and manage their online presence [12] - Currently rated 3 (Hold) by Zacks, Wix has a VGM Score of A and a Growth Style Score of A, indicating potential for growth [13] - The company is projected to achieve a year-over-year earnings growth of 5.8% for the current fiscal year, with a recent upward revision in earnings estimates [13][14]

Core Insights - RBC Capital analyst Brad Erickson has reduced the price target for Wix.com (WIX) from $210 to $190 while maintaining an Outperform rating on the shares [1] - The company's Q3 performance was challenging, primarily due to Vibe coding impacting margins more than anticipated [1] - The top-line results do not fully reflect incremental growth, indicating potential underlying issues [1] Financial Performance - Management noted that Base44 significantly contributed to the Creative Subscriptions segment, which led to an upward revision in bookings guidance [1] - This suggests that core Creative Subscriptions may have slightly underperformed expectations [1]

Company Overview - Wix.com is a prominent player in the website development industry, offering a user-friendly platform for website creation without coding skills [1] Market Sentiment - Scotiabank has set a bullish price target of $175 for WIX, suggesting a potential upside of 76.14% from its current trading price of $99.35 [2] - The average brokerage recommendation for WIX is 1.38, indicating a consensus between Strong Buy and Buy, with 18 out of 24 brokerage firms rating it as Strong Buy and 3 as Buy [2][3] Stock Performance - Despite the positive outlook, WIX's stock price has recently decreased to approximately $97.92, reflecting a decline of about 3.72% [3] - Over the past year, WIX's stock has experienced significant volatility, reaching a peak of $247.11 and a low of $97.71 [4] - The company has a market capitalization of roughly $5.45 billion, indicating its substantial market presence [4] - WIX has a trading volume of 1,172,984 shares, highlighting considerable investor interest [4]

Core Insights - Wix.com is a significant player in the SaaS industry, providing user-friendly web development tools, but faces competition from platforms like Squarespace and WordPress [1] - Cantor Fitzgerald maintained an "Overweight" rating for Wix while adjusting its price target from $160 to $135 amid a 21.7% stock decline [2][6] - Despite a 14% year-over-year revenue increase in Q3, reaching $505.2 million, Wix's stock hit a two-year low due to investor concerns over a delayed flagship product [3][6] Financial Performance - Wix reported Q3 revenue of $505.2 million, a 14% increase year-over-year, with adjusted earnings per diluted share rising to $1.68, exceeding analysts' expectations [3] - Revenue from Creative Subscriptions increased by 12% to $356.2 million, indicating robust performance in this segment [5] Stock Performance - Wix's stock has entered a bear market, dropping over 48% from its peak earlier in the year, with a current price of $101.70, reflecting a decrease of 19.87% [5] - The stock's decline is attributed to rising operating expenses, including costs related to AI developments and increased marketing investments [4][6] - A recent $1 billion convertible notes offering has raised concerns about potential share dilution, contributing to the stock's downward trend [4]

Financial Performance - Wix.com reported quarterly earnings of $1.68 per share, exceeding the analyst consensus estimate of $1.47 per share [1] - The company achieved quarterly sales of $505.194 million, surpassing the analyst consensus estimate of $502.682 million [1] - Wix.com raised its FY2025 sales guidance from $1.975 billion-$2.000 billion to $1.990 billion-$2.000 billion [1] Strategic Initiatives - The CEO of Wix, Avishai Abrahami, emphasized the company's mission to democratize technology through advanced AI and natural-language development with the introduction of Base44 [2] - The company aims to eliminate barriers of complexity in accessing advanced technology [2] Analyst Reactions - Needham analyst Bernie McTernan maintained a Buy rating on Wix.com but lowered the price target from $200 to $140 [5] - Citizens analyst Andrew Boone maintained a Market Outperform rating and cut the price target from $210 to $185 [5] - Benchmark analyst Mark Zgutowicz also maintained a Buy rating while lowering the price target from $230 to $185 [5]

Core Insights - Wix.Com Ltd reported better-than-expected earnings for Q3, with earnings of $1.68 per share, surpassing the analyst consensus estimate of $1.47 per share [1] - The company achieved quarterly sales of $505.194 million, exceeding the analyst consensus estimate of $502.682 million [1] - Wix.com raised its FY2025 sales guidance from a range of $1.975 billion-$2.000 billion to $1.990 billion-$2.000 billion [1] Company Developments - CEO Avishai Abrahami emphasized the company's mission to democratize technology through advanced AI and natural-language development with the introduction of Base44 [2] - Following the earnings announcement, Wix.com shares rose by 1.2% to $102.90 in pre-market trading [2] Analyst Reactions - Needham analyst Bernie McTernan maintained a Buy rating on Wix.com but lowered the price target from $200 to $140 [5] - Citizens analyst Andrew Boone maintained a Market Outperform rating and cut the price target from $210 to $185 [5] - Benchmark analyst Mark Zgutowicz also maintained a Buy rating while lowering the price target from $230 to $185 [5]

Core Viewpoint - Wix.com raised its full-year bookings and revenue outlook following strong third-quarter results, driven by increased demand from its AI coding platform Base44, despite a significant drop in share price [1][2]. Financial Performance - For 2025, Wix expects bookings to be between $2.06 billion and $2.08 billion, an increase from the previous range of $2.04 billion to $2.08 billion [2]. - The full-year revenue forecast has been raised to $1.99 billion to $2.00 billion, compared to the earlier guidance of $1.98 billion to $2.00 billion [2]. - Third-quarter revenue was reported at $505.2 million, with total bookings rising to $514.5 million [4]. Growth Metrics - For the fourth quarter, Wix projects revenue between $521 million and $531 million, indicating a year-over-year growth of 13% to 15% [3]. - Creative Subscriptions revenue increased by 12% to $356.2 million, while Business Solutions revenue grew by 18% to $149 million [4]. - Creative Subscriptions annual recurring revenue reached $1.48 billion, reflecting an 11% year-over-year increase [4]. Cost and Margin Expectations - The non-GAAP gross margin for the year is expected to be between 68% and 69%, influenced by increased AI-related costs from Base44 [3]. - Non-GAAP operating expenses are projected to be approximately 50% of revenue, with free cash flow expected to reach about $600 million, or around 30% of revenue [3].

Core Viewpoint - Wix.com reported Q3 earnings that exceeded Wall Street expectations, yet the stock fell by 21.7% due to investor concerns about future growth and product delays [1][6]. Financial Performance - Q3 revenue increased by 14% year-over-year to $505.2 million, with adjusted earnings rising from $1.50 to $1.68 per diluted share, surpassing analyst expectations of $1.46 per share on revenues of approximately $502.5 million [2]. - Management raised full-year revenue and order bookings guidance by about $10 million each, indicating a positive outlook despite the overall revenue being in the $2.0 billion range [3]. Stock Valuation - Following the earnings report, Wix shares are trading at 14 times forward earnings estimates and 10.4 times free cash flow, suggesting that the stock is fairly valued after the recent drop [5]. Strategic Changes and Concerns - The introduction of the Base44 vibe coding app is altering Wix's business operations, with a significant marketing push impacting operating margins and a shift towards month-to-month subscriptions instead of long-term contracts, raising investor concerns about potential long-term mistakes [7]. - The anticipated flagship product's release has been delayed from summer 2025 to 2026, which has contributed to investor dissatisfaction as Wall Street was looking for evidence of accelerating growth from new initiatives [6][7].

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Core Insights - Wix.com reported $505.19 million in revenue for Q3 2025, a year-over-year increase of 13.6% and an EPS of $1.68, up from $1.50 a year ago, exceeding the Zacks Consensus Estimate for revenue by +0.51% and for EPS by +15.86% [1] Financial Performance - Total Bookings reached $514.54 million, surpassing the average estimate of $509.25 million [4] - Business Solutions Total Bookings were $148.19 million, slightly below the average estimate of $148.91 million [4] - Creative Subscriptions ARR was reported at $1.46 billion, exceeding the average estimate of $1.44 billion [4] - Total Bookings for Creative Subscriptions amounted to $366.35 million, above the average estimate of $361.59 million [4] - Revenues from Business Solutions were $149.02 million, exceeding the average estimate of $147.14 million, reflecting a year-over-year change of +18.4% [4] - Revenues from Creative Subscriptions were $356.17 million, slightly above the average estimate of $355.56 million, with a year-over-year change of +11.7% [4] - Non-GAAP Gross Profit for Business Solutions was $50.15 million, exceeding the average estimate of $47.21 million [4] - Non-GAAP Gross Profit for Creative Subscriptions was $299.59 million, below the average estimate of $302.24 million [4] Stock Performance - Wix.com shares have returned -5.1% over the past month, compared to the Zacks S&P 500 composite's -0.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]