{"id":45326,"date":"2025-11-19T11:35:29","date_gmt":"2025-11-19T11:35:29","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/11\/19\/wix-stock-has-formed-a-risky-pattern-will-it-crash-further-2\/"},"modified":"2025-11-19T11:35:29","modified_gmt":"2025-11-19T11:35:29","slug":"wix-stock-has-formed-a-risky-pattern-will-it-crash-further-2","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/11\/19\/wix-stock-has-formed-a-risky-pattern-will-it-crash-further-2\/","title":{"rendered":"Wix stock has formed a risky pattern: will it crash further?"},"content":{"rendered":"
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Wix’s stock price has crashed to a bear market this year, as it has crashed by over 48% from its highest level this year, as concerns about its growth and the emerging competition rise. It was trading at $126 on Wednesday, with its market capitalization remaining at $7 billion, down from the year-to-date high of $13 billion.<\/p>\n

Wix growth is continuing <\/h2>\n

Wix is a top company that helps users create websites without doing any coding. It operates in a highly competitive industry, where it competes with popular companies like Squarespace, Weebly, and WordPress.<\/p>\n

Most recently, the company\u2019s business has come under pressure as newer firms emerged that are helping people build their websites and applications by just description. <\/p>\n

One of these companies is Lovable, which crossed the $200 million revenue mark this week and is considering raising money at a a $6 billion valuation.<\/p>\n

Wix has moved into the industry by buying Base44, a similar company in a deal worth $80 million. In a recent statement, the company said that it has over 2 million users and will generate $50 million ARR by the end of this year and $100 million by 2026. The CEO said<\/a>:<\/p>\n

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\u201cWith Base44, we\u2019re extending this mission by bringing the next generation of AI and natural-language development to applications. This is the next phase in the evolution.\u201d<\/p>\n<\/blockquote>\n

The most recent numbers showed that the company’s revenue rose by 14% to $505 million in the third quarter, with its creative subscriptions rising by 12% to $356 million. Its business solutions revenue rose by 18% to $149 million.<\/p>\n

Wix now expects that its revenue will continue rising this year and will be between $1.99 billion and $2 billion. The average estimate among analysts is that its annual revenue will be $1.99 billion.<\/p>\n

However, the company expects that its costs will be higher as it ramps up the performance of Base44.<\/p>\n

Is Wix cheap or expensive?<\/h2>\n

A common question is on whether Wix is a bargain or highly expensive as its growth slows and competition rises. Data compiled by SeekingAlpha shows that the forward price-to-earnings (P\/E) ratio is 18, ower than the sector median of 23. <\/p>\n

Wix has a PEG ratio of 0.36, much lower than the sector median of 0.96. Also, its forward EV to EBITDA multiple is 16, lower than the median estimate of 19. <\/p>\n

One of the best ways to value a company like Wix is known as the Rule of 40. This is an approach that looks at a company\u2019s revenue growth and its profit margins. <\/p>\n

In this case, the company\u2019s forward revenue growth metric is about 14%, while its profit margin is about 8.90%. This gives it a rule-of-40 multiple of about 22%, making it a bit overvalued<\/a>.<\/p>\n

Wix stock price technical analysis<\/h2>\n
Wix<\/a> stock chart | Source: TradingView<\/figcaption><\/figure>\n

The weekly timeframe chart shows that the Wix share price has remained under pressure in the past few months. It has moved from a high of $248 in January this year to the current $126. <\/p>\n

Wix has moved to the 61.8% Fibonacci Retracement level at $127. It also moved below the 50-week and 200-week Exponential Moving Averages (EMA).<\/p>\n

However, the stock has formed a head-and-shoulders pattern, which is a common bearish sign in technical analysis. Therefore, the stock wil likely continue falling as sellers target the key support at $100. <\/p>\n

The post Wix stock has formed a risky pattern: will it crash further?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Wix’s stock price has crashed to a bear market this year, as it has crashed by over 48% from its highest level this year, as concerns about its growth and the emerging competition rise. It was trading at $126 on Wednesday, with its market capitalization remaining at $7 billion, down from the year-to-date high of <\/p>\n","protected":false},"author":1,"featured_media":45327,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-45326","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/45326","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=45326"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/45326\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/45327"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=45326"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=45326"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=45326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}