topstockalerts
Nov 11, 1:42 AM
Bank of America downgraded Wix. com to Underperform from Buy, citing slowing growth in its Partners business, rising competition from AI-powered coding platforms such as Lovable and Cursor, and concerns that higher marketing spending could pressure profitability despite strong expansion at its AI platform Base44. The bank also cut its price target by 9%, to
$68 from
$75.
Wix reported Q3 revenue of
$570.2 million, up 13% year over year, beating analyst expectations of
$566.1 million. Bookings reached
$573 million, up 11% and also above consensus. However, Partners segment revenue increased 11% to
$212.4 million, missing the
$214.1 million estimate and slowing by six percentage points from the previous quarter.
Bank of America analyst Michael McGovern argued that Base44's rapid growth is masking weaker underlying performance in Wix's core business. Base44's annual recurring revenue (ARR) approached
$250 million.
$WIX $BAC
