Here's Why Wix.com Stock Tumbled 16% in January
Shares of website-building platform Wix (NASDAQ: WIX) dropped 16.4% in January, according to data provided by S&P Global Market Intelligence. Other than a buyback plan announced late in the month, there was no meaningful news driving the decline. Instead, persistent fears that artificial intelligence will wreck business models across the software industry are likely the culprit.
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While website-building tools are a dime a dozen, switching costs are incredibly high. Once a customer builds a website for their business on Wix's platform, moving that website is a disruptive, painful process that usually isn't worth the effort.
Source Fool.com
