"Gogolev argues the investment case is diminishing due to signs of core business revenue growth deceleration, that margin improvement will be slower and more volatile than investors expect, and that the website and e-commerce management space faces structurally more technology-driven competition over the long term compared to other parts of JPMorgan's coverage."
"The earnings data offers some support for this view. Q4 2025 revenue came in at $524.27 million, missing estimates by 0.64%, while Creative Subscriptions, the core business segment, grew just 12% year over year - the slowest segment in the portfolio."
"Wix shares have rebounded 25.17% over the past month after falling 49.28% over the past year. JPMorgan's downgrade arrives just as that bounce has pushed the stock back near the firm's new ceiling."
JPMorgan analyst Alexei Gogolev downgraded Wix.com to Underweight, reducing the price target from $114 to $91. The downgrade reflects concerns over slowing core business revenue growth and volatile margin improvements. Wix's Q4 2025 revenue missed estimates, and the Creative Subscriptions segment showed the slowest growth. The downgrade comes after a recent stock rebound, contrasting with the broader analyst community's more positive outlook. Wix's high trailing P/E ratio and the growth in free cash flow add complexity to its valuation.
Read at 24/7 Wall St.
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