What Happened?
Shares of website building platform Wix (NASDAQ: WIX) fell 4.7% in the afternoon session after Morgan Stanley lowered its price target on the stock, and the move was made worse by a broader sell-off in the technology sector.
The investment bank's analyst, Elizabeth Porter, cut the price target for Wix.com to $160.00 from $181.00. Despite this reduction, Morgan Stanley kept its "Overweight" rating on the shares. The negative sentiment was amplified by a wider market trend where investors moved out of technology stocks. This sector-wide pressure led to declines in major indexes, including a 1% drop in the Nasdaq 100 and a 0.5% fall in the S&P 500, as a general sell-off weighed on market performance.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Wix? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Wix’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 3.9% on the news that tech stocks pulled back as reports surfaced that Chinese customs authorities blocked Nvidia's H200 AI chips, effectively halting their entry despite recent U.S. export approvals.
This semiconductor sell-off, led by Broadcom and Micron, reflected deepening fears that the "AI trade" was colliding with a protectionist "new normal." Investors were concerned about the prospect of a fragmented global order where tech giants are caught between Washington's industrial strategy and Beijing's push for semiconductor sovereignty. Broadening the risk, markets were also agitated about the Justice Department's investigation into Fed Chair Jerome Powell, sparking concerns over central bank independence. This domestic political friction, paired with rising oil prices from Iranian civil unrest, likely forced a pivot from growth to defense.
Wix is down 16.4% since the beginning of the year, and at $84.44 per share, it is trading 65.8% below its 52-week high of $246.76 from January 2025. Investors who bought $1,000 worth of Wix’s shares 5 years ago would now be looking at an investment worth $349.96.
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