Analyst upgrades Wix.com shares as investors should buy the dip

On May 23, 2025, investors were encouraged to buy shares of Wix.com by analyst Vikram Kesavabhotla of Baird. The advisory comes in light of a significant decline in Wix.com's stock, which has fallen by over 27% in the year to date, contrasting sharply with the S&P 500, which has decreased by less than 1%. Kesavabhotla's analysis suggests that the recent downward trend has created an appealing opportunity for investors to acquire stakes in what he describes as a high-quality business. The analyst made the call after trimming his price target for Wix.com by $25, adjusting it to $190. Despite the revision, this price target still represents a potential upside of approximately 22.6% based on Wednesday's closing price. This forecasts a positive recovery outlook for the company as it has recently navigated difficult financial waters, with its first-quarter earnings report alleviating some of the uncertainty surrounding its guidance for the fiscal year 2025. The improved expectations following this report also generated optimism regarding the firm's capacity to fulfill its projected goals. In addition to the specific stock performance, Kesavabhotla noted that Wix.com has numerous advantageous long-term growth factors that contribute to its investment case. These long-term drivers include ongoing enhancements to its product offerings. As a result, the upgraded recommendation aligns with the majority view among analysts monitoring the company, many of whom have similarly assigned a buy-equivalent rating. The positive sentiment reflects a sense of trust in Wix.com’s overall potential, even amidst short-term setbacks. Investors will be closely watching Wix.com as it works to stabilize its performance after a challenging stretch. Many view the current dip as an opportunity to enter a robust market segment led by a company that continues to innovate and expand its capabilities. As further data on the company's performance and growth strategies unfolds, analysts and investors alike will need to evaluate the long-term implications of this upgrade and the subsequent market response to the stock's value.