Wix Stock Has Tanked 70% This Past Year, and One Investor Sold $6 Million in Shares Last Quarter

Company Overview - Wix.com is a leading provider of cloud-based web development solutions, enabling users to build, manage, and grow their digital presence [6] - The company operates on a subscription-based business model, supported by a suite of complementary services and payment solutions, driving recurring revenue and customer engagement [6] - Wix.com targets individuals, small businesses, and enterprises globally, offering a range of products including Wix Editor, Wix ADI, and Wix Payments [8] Financial Performance - For the trailing twelve months (TTM), Wix.com reported revenue of $1.93 billion and a net income of $138.90 million [4] - As of February 17, 2026, Wix.com had a market capitalization of $3.8 billion [4] - In the third quarter, revenue increased by 14% year over year to $505.2 million, with total bookings also rising by 14% to $514.5 million [9] Recent Developments - No Street Capital sold 50,000 shares of Wix.com, valued at approximately $6.05 million, reducing its stake in the company [2] - Following the sale, Wix.com represented 3.5% of No Street GP LP's 13F assets, placing it outside the fund's top five holdings [7] - As of the sale date, Wix shares were priced at $68.07, reflecting a 70% decline over the past year, significantly underperforming the S&P 500, which increased by about 17% [7] Future Outlook - Management anticipates approximately $600 million in free cash flow for 2025, excluding acquisition costs, with free cash flow reaching $127.3 million in the third quarter [9] - The company is transitioning into an AI-enabled platform, with expectations of at least $50 million in annual recurring revenue (ARR) from its AI application-builder by year-end [10] - The ongoing execution in AI and margin discipline will be critical in determining whether Wix.com represents a value trap or a significant reset in its business model [11]