Wix Q1 Bookings Rise 15% to $585m but Shares Plunge 27% on Margin Hit
Wix shares plunged 27.1% after Q1 bookings of $585m (+15% YoY) came largely from Base44, while core creative subscription growth decelerated to 2% from 9%. Analysts cut price targets to $54–$66, citing AI-driven “vibe coding” competition, margin hit from heavy marketing spend, and trimmed 2026–27 FCF forecasts by 13–26%.
1. Q1 Results and Share Reaction
Wix delivered Q1 bookings of $585 million, up 15% year-on-year, but core creative subscription growth slipped to 2% from 9%. Shares plunged 27.1% to $55.32 following the print.
2. Analyst Downgrades and Price Targets
Wells Fargo cut its rating to Equal Weight with a $54 target as RBC moved to Sector Perform at $60 and Citi lowered to Neutral at $66, reflecting fresh caution on growth and margins.
3. AI Competition Driving Business Slowdown
Analysts flagged competition from AI-powered “vibe coding” tools as a key factor in decelerating core subscription bookings and weakening the partner channel of web design agencies.
4. Base44 Growth and Margin Pressure
Base44 annualized recurring revenue climbed from $100m to $150m, but heavy marketing and AI compute costs pushed adjusted gross margin down to 66.2% and sales and marketing expenses up 88%, prompting 2026–27 FCF forecast cuts of up to 26%.