Dorsal Capital Reduces Stake in Wix.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Should l Buy WIX?
Source: Fool
- Share Reduction Details: Dorsal Capital sold 25,000 shares of Wix.com in Q4 2025, with an estimated transaction value of $3.02 million, indicating a potential loss of confidence in the company that could affect market perception.
- Position Value Decline: This sale reduced Dorsal's quarter-end position value in Wix.com to $118.74 million, reflecting a significant 69.4% drop in the company's stock price over the past year, which underperformed the S&P 500 by 81.18 percentage points.
- Top Holdings Overview: Wix.com accounted for 5.6% of Dorsal's 13F reportable AUM, with its top five holdings including PLNT, TSM, MSFT, Z, and HD, highlighting Dorsal's focus on diversified investments.
- Market Reaction and Outlook: Despite a 14% year-over-year revenue increase in Q3 2025, Wix.com reported a loss due to rising operating expenses, which has dampened market confidence in its future performance and may influence investor decisions.
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Analyst Views on WIX
Wall Street analysts forecast WIX stock price to rise
19 Analyst Rating
18 Buy
1 Hold
0 Sell
Strong Buy
Current: 72.560
Low
135.00
Averages
172.24
High
210.00
Current: 72.560
Low
135.00
Averages
172.24
High
210.00
About WIX
Wix.com Ltd. (Wix) is an Israel-based company engaged in the provision of a web development platform enabling businesses and organizations to take businesses, brands, and workflow online. The Company provides solutions that business owners can use to operate various aspects of their business online, such as selling goods, taking reservations, and scheduling and confirming appointments. These applications provide Wix registered users a bespoke front-end for customers visiting their Website, as well as a back-end management dashboard. The Company has developed these software applications for businesses in specific verticals, including retail and online stores, service providers, hotel and property management, music, and restaurants. These vertical applications are integrated into the Company's Website templates or can be installed on any existing Website and set up by the user and without the need to write code.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Wix Reports 2025 Financials and Growth Outlook for 2026
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- ARR Milestone: Base44 achieved $100 million in Annual Recurring Revenue (ARR) just one year post-launch, reflecting a rapidly growing user community that is expanding Wix's Total Addressable Market (TAM) significantly.
- Positive Future Outlook: Wix anticipates mid-teens percentage revenue growth for 2026 and plans to complete a $2 billion share repurchase program within the year, demonstrating confidence in future growth and commitment to shareholder value.
- Investor Confidence Boosted: A $250 million equity investment led by Durable Capital Partners underscores shared conviction in Wix's long-term strategy, reinforcing the company's market position in the rapidly evolving AI landscape.
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- Revenue Expectations: The anticipated revenue for Q4 is $527.69 million, representing a 14.6% year-over-year increase, indicating the company's ongoing efforts in customer base expansion and product innovation despite market pressures.
- Historical Performance: Over the past two years, Wix.com has exceeded EPS estimates 100% of the time and revenue estimates 75% of the time, showcasing the company's financial stability and market confidence.
- Market Reaction: Despite facing margin pressures, the market's reaction to Wix may be overly negative, as analysts believe the company still possesses strong growth potential, particularly following the launch of its app integrated with ChatGPT, which could attract more users.
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- Financial Overview: Wix.com reported a 14% year-over-year revenue increase in Q4 2025, reaching $524.27 million, narrowly missing the analyst consensus of $527.82 million, indicating heightened market competition pressures.
- Profitability Improvement: The adjusted EPS of $1.81 surpassed the analyst estimate of $1.43, demonstrating significant progress in cost control and operational efficiency.
- Strategic Financing Plan: Wix.com entered into an agreement with Durable Capital Partners to raise up to $250 million through a private placement, intending to use the proceeds for general corporate purposes to support future growth strategies.
- Future Outlook: The company expects consolidated revenue and bookings to grow in the mid-teens percentage range year-over-year in 2026, reflecting confidence in ongoing investments in its AI-driven platform and market expansion.
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- Private Placement Agreement: Wix signed an agreement with Durable Capital Partners to sell securities through a private placement to institutional investors, expected to generate approximately $250 million in total proceeds before fees and expenses, thereby strengthening the company's capital structure to support future investments.
- 2026 Outlook: The company anticipates total bookings and overall revenue to increase by a mid-teens percentage in 2026 compared to the prior year, indicating strong market demand for new products like Wix Harmony and Base44, which may drive long-term growth.
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- Significant Revenue Growth: Although total revenue of $524.3M fell short of expectations, it still represented a 14% year-over-year increase, with Creative Subscriptions revenue rising 12% to $370.4M and Business Solutions revenue surging 18% to $153.8M, indicating positive progress in diversifying revenue streams.
- Share Buyback Implementation: In Q4, Wix repurchased approximately 750K ordinary shares worth around $100M at an average price of $133.56 per share, with plans to complete a $2B buyback program by 2026, demonstrating confidence in the intrinsic value of its stock.
- Optimistic Future Outlook: Wix expects bookings and revenue to grow at a mid-teens percentage year-over-year in 2026, with a first-quarter revenue growth estimate of 14.55%, while free cash flow margins are projected to be in the low to mid-20% range, reflecting the health and profitability of its core business.
See More
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- Strong Financial Performance: Wix reported Q4 2025 revenue of $524 million, a 14% year-over-year increase, with total revenue for the year reaching $1.99 billion, up 13%, indicating sustained growth driven by new cohort momentum and Base44's outperformance.
- ARR Milestone: Base44 achieved $100 million in Annual Recurring Revenue (ARR) just one year post-launch, reflecting a rapidly growing user community that is expanding Wix's Total Addressable Market (TAM) significantly.
- Positive Future Outlook: Wix anticipates mid-teens percentage revenue growth for 2026 and plans to complete a $2 billion share repurchase program within the year, demonstrating confidence in future growth and commitment to shareholder value.
- Investor Confidence Boosted: A $250 million equity investment led by Durable Capital Partners underscores shared conviction in Wix's long-term strategy, reinforcing the company's market position in the rapidly evolving AI landscape.
See More
Wix.com Set to Announce Q4 Earnings Results
- Earnings Announcement: Wix.com is set to release its Q4 earnings on March 4 before market open, with consensus EPS estimates at $1.47, reflecting a 23.8% year-over-year decline, which could impact investor sentiment.
- Revenue Expectations: The anticipated revenue for Q4 is $527.69 million, representing a 14.6% year-over-year increase, indicating the company's ongoing efforts in customer base expansion and product innovation despite market pressures.
- Historical Performance: Over the past two years, Wix.com has exceeded EPS estimates 100% of the time and revenue estimates 75% of the time, showcasing the company's financial stability and market confidence.
- Market Reaction: Despite facing margin pressures, the market's reaction to Wix may be overly negative, as analysts believe the company still possesses strong growth potential, particularly following the launch of its app integrated with ChatGPT, which could attract more users.
See More
CRWD's Critical Role in AI Adoption
- Record Cash Flow: CrowdStrike (CRWD) reported a 57% year-over-year increase in free cash flow for Q4, reaching a record $1.24 billion, driven by strong demand for its cloud-based cybersecurity platform and AI tools, prompting management to raise its fiscal 2027 revenue outlook to between $5.87 billion and $5.92 billion, reflecting the company's competitive edge in a rapidly growing market.
- Importance of AI Infrastructure: CEO George Kurtz emphasized CrowdStrike's critical role in global AI adoption, describing it as 'durable, mission-critical infrastructure for securing AI and accelerating global AI adoption,' indicating the company's strategic position in technological transformation.
- Market Volatility Impact: Despite the pressure from Middle Eastern conflicts, S&P 500 futures rebounded 0.3% in early trading, reflecting investors' willingness to seek opportunities amid uncertainty, particularly as oil prices surpassed $80 per barrel, which could influence the overall economic outlook.
- Future Outlook: The upcoming ISM services index and ADP employment report will be key market focus points, with non-farm jobs expected to rise by 48,000; if the data exceeds expectations, it could further boost market confidence, while disappointing figures may raise concerns.
See More
Wix.com Reports Q4 2025 Results with Mixed Financial Performance
- Financial Overview: Wix.com reported a 14% year-over-year revenue increase in Q4 2025, reaching $524.27 million, narrowly missing the analyst consensus of $527.82 million, indicating heightened market competition pressures.
- Profitability Improvement: The adjusted EPS of $1.81 surpassed the analyst estimate of $1.43, demonstrating significant progress in cost control and operational efficiency.
- Strategic Financing Plan: Wix.com entered into an agreement with Durable Capital Partners to raise up to $250 million through a private placement, intending to use the proceeds for general corporate purposes to support future growth strategies.
- Future Outlook: The company expects consolidated revenue and bookings to grow in the mid-teens percentage range year-over-year in 2026, reflecting confidence in ongoing investments in its AI-driven platform and market expansion.
See More
Wix Annual Recurring Revenue Reaches $1.836 Billion at Year-End
- Annual Revenue Growth: Wix's annual recurring revenue reached $1.836 billion at year-end, reflecting a 14% year-over-year increase, which underscores the company's strong growth momentum in its subscription and business solutions segments, setting a solid foundation for future expansion.
- Private Placement Agreement: Wix signed an agreement with Durable Capital Partners to sell securities through a private placement to institutional investors, expected to generate approximately $250 million in total proceeds before fees and expenses, thereby strengthening the company's capital structure to support future investments.
- 2026 Outlook: The company anticipates total bookings and overall revenue to increase by a mid-teens percentage in 2026 compared to the prior year, indicating strong market demand for new products like Wix Harmony and Base44, which may drive long-term growth.
- Market Sentiment Shift: Wix's stock surged over 10% in Wednesday's premarket trading, with retail investor sentiment shifting from 'bearish' to 'extremely bullish', indicating a significant increase in market confidence regarding the company's future prospects.
See More
Wix.com Shares Rise 9% Despite Mixed Q4 Results and $250M Investment
- Investor Confidence Boost: Wix.com announced a $250M equity investment led by Durable Capital Partners, and despite a 6% year-over-year decline in non-GAAP EPS to $1.81, which beat analyst expectations, this reflects strong market confidence in the company's future growth potential.
- Significant Revenue Growth: Although total revenue of $524.3M fell short of expectations, it still represented a 14% year-over-year increase, with Creative Subscriptions revenue rising 12% to $370.4M and Business Solutions revenue surging 18% to $153.8M, indicating positive progress in diversifying revenue streams.
- Share Buyback Implementation: In Q4, Wix repurchased approximately 750K ordinary shares worth around $100M at an average price of $133.56 per share, with plans to complete a $2B buyback program by 2026, demonstrating confidence in the intrinsic value of its stock.
- Optimistic Future Outlook: Wix expects bookings and revenue to grow at a mid-teens percentage year-over-year in 2026, with a first-quarter revenue growth estimate of 14.55%, while free cash flow margins are projected to be in the low to mid-20% range, reflecting the health and profitability of its core business.
See More
