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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid a tightening environment for tech sector spending, Wix.com is facing intense selling pressure following financial results that fell short of expectations. Scotiabank lowered its price target for the stock from $110 to $90, while maintaining an 'Outperform' rating. This adjustment follows the company's Q1 non-GAAP EPS of $0.68, which missed consensus estimates by 44%, prompting management to announce the layoff of 1,000 employees—approximately 20% of its workforce—to combat surging operating expenses.
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Sign InThese measures reflect a deeper crisis in the company's cost structure, as operating expenses climbed to 35% of total revenue, alongside identified capability gaps in the 'Wix Harmony' AI platform. Compared to peers in the web development space, Wix shares plummeted 27% in a single session following the report, a move that significantly outpaced volatility seen in competitors like GoDaddy during the same period per market data. Investors are also weighing the impact of potential securities litigation signaled by firms such as Frank R. Cruz regarding financial transparency.
Technically, WIX stock stood at $48.22 (close June 9, 2026), representing a sharp discount to previous target levels. Traders should monitor the upcoming U.S. Initial Jobless Claims on June 11, 2026, as broader labor market conditions may influence tech sector sentiment. Support levels near the June 9 low of $46.90 remain a key watchpoint for short-term stabilization according to market data.