Wix.com (WIX) Stock: Why The Price Substantially Fell Today

By Pulse 2.0 Staff ● Feb 16, 2022
  • The stock price of Wix.com (NASDAQ: WIX) fell by over 20% during intraday trading today. This is why it happened.

The stock price of Wix.com (NASDAQ: WIX) fell by over 20% during intraday trading today. Investors are responding negatively to the company’s fourth-quarter results.

Wix.com reported a Q4 EPS of ($0.37), which was $0.01 better than analyst estimates of ($0.38). And the revenue for the quarter was $328.3 million compared to the consensus estimate of $331.16 million.

In terms of guidance, Wix.com expects Q1 2022 revenue of $338-343 million, compared to the consensus of $355 million.

KEY QUOTES:

“We have experienced a much higher level of volatility in demand for online services over the last year and a half due to COVID. As a result, we are not able to forecast our business with the same level of confidence as we have historically been able to pre-COVID, even as fundamentals remain strong. Given this volatility and continued uncertainty, we are adjusting our current guidance practice.”

“As long as we are in a period of heightened volatility, we will not be providing annual guidance for bookings, revenue or free cash flow. We will issue quarterly guidance for total revenue to provide updates on our progress to drive growth. We will also provide additional color around forward expectations in our quarterly earnings releases.”

— Wix earnings release

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.