Why Wix.com Stock Crumbled 22% Today

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].