Elwood Capital Fully Liquidates Wix.com Stake
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16 hours ago
0mins
Source: Fool
- Full Liquidation: Elwood Capital disclosed in an SEC filing that it fully liquidated its stake in Wix.com by selling 52,033 shares for an estimated $4.35 million, indicating a diminished confidence in Wix's future performance.
- Asset Allocation Shift: This transaction reduced Elwood's position in Wix.com from 3.2% to zero, with a net position change of $5.41 million, reflecting a significant strategic adjustment in its investment approach towards Wix.
- Poor Market Performance: Wix.com shares are currently priced at $56.06, down 63% over the past year, significantly underperforming the S&P 500's 28% gain, leading investors to adopt a cautious outlook on its future growth potential.
- Financial Health Status: Despite Wix's first-quarter revenue rising 14% year-over-year to $541 million and annual recurring revenue reaching $1.9 billion, the company reported a GAAP net loss of $57.5 million, leaving the market awaiting evidence that its AI investments can generate sustainable cash flow growth.
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Analyst Views on WIX
Wall Street analysts forecast WIX stock price to rise
19 Analyst Rating
18 Buy
1 Hold
0 Sell
Strong Buy
Current: 52.650
Low
135.00
Averages
172.24
High
210.00
Current: 52.650
Low
135.00
Averages
172.24
High
210.00
About WIX
Wix.com Ltd. (Wix) is an Israel-based company engaged in the provision of a web development platform enabling businesses and organizations to take businesses, brands, and workflow online. The Company provides solutions that business owners can use to operate various aspects of their business online, such as selling goods, taking reservations, and scheduling and confirming appointments. These applications provide Wix registered users a bespoke front-end for customers visiting their Website, as well as a back-end management dashboard. The Company has developed these software applications for businesses in specific verticals, including retail and online stores, service providers, hotel and property management, music, and restaurants. These vertical applications are integrated into the Company's Website templates or can be installed on any existing Website and set up by the user and without the need to write code.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Elwood Capital Fully Liquidates Wix.com Stake
- Full Liquidation: Elwood Capital disclosed in an SEC filing that it fully liquidated its stake in Wix.com by selling 52,033 shares for an estimated $4.35 million, indicating a diminished confidence in Wix's future performance.
- Asset Allocation Shift: This transaction reduced Elwood's position in Wix.com from 3.2% to zero, with a net position change of $5.41 million, reflecting a significant strategic adjustment in its investment approach towards Wix.
- Poor Market Performance: Wix.com shares are currently priced at $56.06, down 63% over the past year, significantly underperforming the S&P 500's 28% gain, leading investors to adopt a cautious outlook on its future growth potential.
- Financial Health Status: Despite Wix's first-quarter revenue rising 14% year-over-year to $541 million and annual recurring revenue reaching $1.9 billion, the company reported a GAAP net loss of $57.5 million, leaving the market awaiting evidence that its AI investments can generate sustainable cash flow growth.
See More
Elwood Capital Fully Exits Wix.com Holdings
- Complete Exit: Elwood Capital sold all 52,033 shares of Wix.com in Q1, with a transaction value of approximately $4.35 million, resulting in a quarter-end position value decrease of $5.41 million, indicating a loss of confidence in the stock.
- Financial Performance: Despite Wix.com reporting a 14% year-over-year revenue increase to $541 million and a 15% rise in bookings to $585 million in Q1, the company still posted a GAAP net loss of $57.5 million, highlighting ongoing pressure from growth investments.
- AI Product Momentum: Wix.com's new AI-driven product Base44 surpassed $150 million in annual recurring revenue, with management emphasizing strong momentum, although the market remains cautious about whether these innovations can translate into sustainable cash flow growth.
- Market Skepticism: Following a 63% decline in stock price over the past year, investor sentiment towards Wix.com's turnaround story is skeptical, and while the CEO expresses strengthened confidence in the company's long-term prospects, the ongoing lack of profitability remains a focal point for the market.
See More
Elwood Capital Fully Exits Wix.com Position
- Liquidation Trade: Elwood Capital disclosed in an SEC filing that it fully liquidated its 52,033 shares in Wix.com during Q1 2026, with an estimated trade value of $4.35 million, reflecting a pessimistic outlook on the company's future performance.
- Position Change: This transaction reduced Elwood's stake in Wix.com from 3.2% to zero, with a net position change of $5.41 million, indicating concerns over market volatility and the company's profitability.
- Performance Metrics: Despite Wix.com reporting a 14% year-over-year revenue increase to $541 million in Q1 and achieving an annual recurring revenue of $1.9 billion, it still posted a GAAP net loss of $57.5 million, highlighting ongoing profitability challenges.
- Market Reaction: Wix.com's stock price has plummeted 63% over the past year, significantly underperforming the S&P 500's 28% gain, which may dampen investor confidence further, and Elwood's exit could exacerbate negative sentiment around the stock.
See More
SentinelOne Cuts 8% Workforce to Focus on AI Investments
- Layoff Announcement: SentinelOne has announced an 8% workforce reduction, affecting approximately 240 employees, which is expected to incur a one-time charge of $25 million, aimed at streamlining operations and enhancing efficiency.
- Strategic Shift: CEO Tomer Weingarten stated that the layoffs are a strategic move towards focusing on artificial intelligence and data investments, intended to boost productivity and create a more agile organization.
- Financial Outlook: The company anticipates quarterly revenues between $289 million and $291 million, falling short of the $292 million expected by analysts, while the full-year revenue guidance is set between $1.195 billion and $1.205 billion, missing the $1.21 billion forecast.
- Market Reaction: Following the layoffs and lackluster financial guidance, SentinelOne's stock plummeted by 12%, indicating investor concerns regarding the company's growth potential, particularly in the rapidly evolving AI landscape.
See More
Wix.com Under Investigation for Securities Fraud Following Stock Plunge
- Significant Stock Drop: Wix.com experienced a 27% decline in stock price from $75.88 to $55.32 on May 13, 2026, following the release of its Q1 2026 financial results, which reported earnings and revenue below consensus expectations, indicating a loss of competitiveness in the professional developer market.
- Investigation Reasons: Bleichmar Fonti & Auld LLP is investigating whether Wix made false statements to investors regarding demand, AI competition, and its ability to innovate, potentially leading to securities fraud that undermines investor confidence.
- Increased AI Competition: Wix's focus on AI tools has not met the needs of professional developers, particularly with its new Wix Harmony platform lacking essential features, prompting customers to switch to competing AI solutions, which exacerbates market pressures.
- Legal Options for Investors: Affected investors are encouraged to contact BFA Law to understand their legal rights, with the firm offering representation on a contingency fee basis, highlighting its commitment to protecting investor interests.
See More
Wix.com Under Investigation for Possible Securities Law Violations
- Disappointing Earnings: In its Q1 2026 report, Wix disclosed earnings and revenue that fell short of consensus expectations, alongside a significant decline in operating margins, primarily attributed to weakness in its professional developer business, indicating mounting pressure on the company.
- Increased Competitive Pressure: Wix acknowledged that its professional developer customers are turning to competing AI tools, and its new Wix Harmony platform has “holes” and “missing capabilities,” highlighting the company's lag in technological innovation and product updates, which could impact future market share.
- Significant Stock Drop: Following the earnings release, Wix's stock price plummeted by $20.56, or approximately 27%, from $75.88 on May 12 to $55.32 on May 13, reflecting investor concerns and a loss of confidence in the company's outlook.
- Ongoing Legal Investigation: Although no lawsuit has been filed yet, Kirby McInerney LLP is investigating potential violations of federal securities laws by Wix and its senior management, which may affect the company's future legal liabilities and reputation.
See More
Elwood Capital Fully Liquidates Wix.com Stake
- Full Liquidation: Elwood Capital disclosed in an SEC filing that it fully liquidated its stake in Wix.com by selling 52,033 shares for an estimated $4.35 million, indicating a diminished confidence in Wix's future performance.
- Asset Allocation Shift: This transaction reduced Elwood's position in Wix.com from 3.2% to zero, with a net position change of $5.41 million, reflecting a significant strategic adjustment in its investment approach towards Wix.
- Poor Market Performance: Wix.com shares are currently priced at $56.06, down 63% over the past year, significantly underperforming the S&P 500's 28% gain, leading investors to adopt a cautious outlook on its future growth potential.
- Financial Health Status: Despite Wix's first-quarter revenue rising 14% year-over-year to $541 million and annual recurring revenue reaching $1.9 billion, the company reported a GAAP net loss of $57.5 million, leaving the market awaiting evidence that its AI investments can generate sustainable cash flow growth.
See More
Elwood Capital Fully Exits Wix.com Holdings
- Complete Exit: Elwood Capital sold all 52,033 shares of Wix.com in Q1, with a transaction value of approximately $4.35 million, resulting in a quarter-end position value decrease of $5.41 million, indicating a loss of confidence in the stock.
- Financial Performance: Despite Wix.com reporting a 14% year-over-year revenue increase to $541 million and a 15% rise in bookings to $585 million in Q1, the company still posted a GAAP net loss of $57.5 million, highlighting ongoing pressure from growth investments.
- AI Product Momentum: Wix.com's new AI-driven product Base44 surpassed $150 million in annual recurring revenue, with management emphasizing strong momentum, although the market remains cautious about whether these innovations can translate into sustainable cash flow growth.
- Market Skepticism: Following a 63% decline in stock price over the past year, investor sentiment towards Wix.com's turnaround story is skeptical, and while the CEO expresses strengthened confidence in the company's long-term prospects, the ongoing lack of profitability remains a focal point for the market.
See More
Elwood Capital Fully Exits Wix.com Position
- Liquidation Trade: Elwood Capital disclosed in an SEC filing that it fully liquidated its 52,033 shares in Wix.com during Q1 2026, with an estimated trade value of $4.35 million, reflecting a pessimistic outlook on the company's future performance.
- Position Change: This transaction reduced Elwood's stake in Wix.com from 3.2% to zero, with a net position change of $5.41 million, indicating concerns over market volatility and the company's profitability.
- Performance Metrics: Despite Wix.com reporting a 14% year-over-year revenue increase to $541 million in Q1 and achieving an annual recurring revenue of $1.9 billion, it still posted a GAAP net loss of $57.5 million, highlighting ongoing profitability challenges.
- Market Reaction: Wix.com's stock price has plummeted 63% over the past year, significantly underperforming the S&P 500's 28% gain, which may dampen investor confidence further, and Elwood's exit could exacerbate negative sentiment around the stock.
See More
SentinelOne Cuts 8% Workforce to Focus on AI Investments
- Layoff Announcement: SentinelOne has announced an 8% workforce reduction, affecting approximately 240 employees, which is expected to incur a one-time charge of $25 million, aimed at streamlining operations and enhancing efficiency.
- Strategic Shift: CEO Tomer Weingarten stated that the layoffs are a strategic move towards focusing on artificial intelligence and data investments, intended to boost productivity and create a more agile organization.
- Financial Outlook: The company anticipates quarterly revenues between $289 million and $291 million, falling short of the $292 million expected by analysts, while the full-year revenue guidance is set between $1.195 billion and $1.205 billion, missing the $1.21 billion forecast.
- Market Reaction: Following the layoffs and lackluster financial guidance, SentinelOne's stock plummeted by 12%, indicating investor concerns regarding the company's growth potential, particularly in the rapidly evolving AI landscape.
See More
Wix.com Under Investigation for Securities Fraud Following Stock Plunge
- Significant Stock Drop: Wix.com experienced a 27% decline in stock price from $75.88 to $55.32 on May 13, 2026, following the release of its Q1 2026 financial results, which reported earnings and revenue below consensus expectations, indicating a loss of competitiveness in the professional developer market.
- Investigation Reasons: Bleichmar Fonti & Auld LLP is investigating whether Wix made false statements to investors regarding demand, AI competition, and its ability to innovate, potentially leading to securities fraud that undermines investor confidence.
- Increased AI Competition: Wix's focus on AI tools has not met the needs of professional developers, particularly with its new Wix Harmony platform lacking essential features, prompting customers to switch to competing AI solutions, which exacerbates market pressures.
- Legal Options for Investors: Affected investors are encouraged to contact BFA Law to understand their legal rights, with the firm offering representation on a contingency fee basis, highlighting its commitment to protecting investor interests.
See More
Wix.com Under Investigation for Possible Securities Law Violations
- Disappointing Earnings: In its Q1 2026 report, Wix disclosed earnings and revenue that fell short of consensus expectations, alongside a significant decline in operating margins, primarily attributed to weakness in its professional developer business, indicating mounting pressure on the company.
- Increased Competitive Pressure: Wix acknowledged that its professional developer customers are turning to competing AI tools, and its new Wix Harmony platform has “holes” and “missing capabilities,” highlighting the company's lag in technological innovation and product updates, which could impact future market share.
- Significant Stock Drop: Following the earnings release, Wix's stock price plummeted by $20.56, or approximately 27%, from $75.88 on May 12 to $55.32 on May 13, reflecting investor concerns and a loss of confidence in the company's outlook.
- Ongoing Legal Investigation: Although no lawsuit has been filed yet, Kirby McInerney LLP is investigating potential violations of federal securities laws by Wix and its senior management, which may affect the company's future legal liabilities and reputation.
See More
